Sources of Finance

What does internal source of finance mean?

• A source from within a business

• A source from outside a business

What is an example of an internal source of finance?

• Owner's fund

• Leasing

• Hire purchase

• Trade credit

What is an example of internal source of finance?

• Owners' funds

• Retained profits

• Sales of assets

• Bank loan

What is an advantage of Retained profit

• satisfaction

• No financial cost

• Shareholders can get more dividend

• You need to pay interest

This type of finance does not need to be repaid.

• Bank loan

• Mortgage

• Overdraft

• Government Grant

The source of finance that is provided by the Owners is called

• Capital

• Owner

Which of the statements about retained profits is false?

• You do not have to pay interest

• Ideal for new businesses

• Shareholders and employees could be frustrated because there is less profit to be 'shared out'

• You are free to use it for any purpose

Which of the following is not true about leasing a car:

• You will have the car for a certain amount of time

• You will likely have a mileage restriction

• You will have the option to buy the car at the end of your term

• Maintenance is free

With tyre purchasing you can spread the purchase cost over monthly installments

• False

• True

How many digits are in a bank account number?

• 4

• 8

• 6

• 16