Theme 2 - Complete quiz

Which one of the following is a source of internal finance?

• Peer to peer lending

• Sale of assets

• Business angels

• Bank overdraft

Which one of the following is a source of external finance?

• Owner's capital

• Retained profits

• Sales of assets

• Crowd funding

If a business borrows money from an external source, they are likely to have have to undergo what?

• An equity assessment

• A credit check

• A due diligence investigation

• A lease provision

The lender has no protection if the borrower fails to repay the money owed =

• Debenture

• Capital gain

• Secured loan

• Unsecured loan

The profit made from selling a share for more than it was purchased for =

• Capital gain

• Operating profit

• Gross profit

• Share issue

A contract to acquire the use of resources such as property or equipment =

• Permanent capital

• Crowd funding

• Lease

• Venture capital

An asset that might be sold to pay a lender when a loan cannot be repaid =

• Limited liability

• Rights issue

• Collateral

• Depreciation

Issuing new shares to existing shareholders at a discount =

• Amortisation

• Debenture

• Share capital

• Rights issue

In a cash flow forecast, the cash inflows less the cash outflows = ???

• Net cash flow

• Closing balance

• Opening balance

• Net profit

In a cash flow forecast, the net cash flow plus (or minus) the opening balance = ????

• Gross profit

• Closing balance

• Break even point

• Cash outflow