LC Business - Sources of Finance

A short-term source of finance must be repaid in

• More than 1 year

• Less than 1 year

• Less than 5 years

• 5 years or more

A medium source of finance must be repaid in

• Less than 1 year

• More than 1 year

• Less than 5 years

• More than 5 years

A long term source of finance must be repaid in

• Less than 1 year

• More than 1 year

• Less than 5 years

• More than 5 years

A government grant is

• a medium term source of finance

• a short term source of finance

• a long term source of finance

Hire purchase is an example of

• a short term source of finance

• a medium term source of finance

• a long term source of finance

Accrued expenses are an example of

• a short term source of finance

• a medium term source of finance

• a long term source of finance

Debentures are an example of

• a short term source of finance

• a medium term source of finance

• a long term source of finance

Debentures are

• A non-repayable source of finance

• An example of a long term loan

• A risk free source of finance

• A free source of finance

Hire purchase is suitable for

• research and development for new products

• paying for stock

• buying buildings and land

• buying new vehicles

Equity capital means

• Money received from the government

• Taking out a loan

• Issuing shares in the business

• Buy now, pay later