S3 Finance

What two factors would a business take into consideration when choosing a type of finance?

• How much they need

• What the money is needed for

• The type of organisation

• The number of shareholders

Owners own savings are...

• Internal

• External

Short term types of finance are paid back in less than...

• 3 years

• 4 years

• 5 years

• 2 years

Long term types of finance are paid back in more than...

• 3 years

• 4 years

• 5 years

• 6 years

A grant from the government does not need to be paid back

• True

• False

What type of finance is this? "Buying an item now and paying for it later, usually with an initial deposit and the rest paid in installments"

• Leasing

• Hire Purchase

• Trade Credit

What type of finance is this? "You pay a ‘rental’ amount to the owner of the product in order to use this in your business"

• Leasing

• Hire Purchase

• Trade Credit

What type of finance is this? "Suppliers allow you to purchase goods and pay for them later – usually after 30 days"

• Leasing

• Hire Purchase

• Trade Credit

A mortgage is used to purchase...

• Delivery vans

• Property

• Machinery

• Raw materials

Select the external sources of finances

• Grant

• Owner's own savings

• Retained profits

• Bank loan