Sources of Finance A level Business Edexcel

A business loan requires :

• endless payments

• interest payments

• dividend payments

• no repayments

Which is the odd-one out ? :

Crowdfunding, share capital, overdraft, retained profit,

• crowdfunding

• share capital

• overdraft

• retained profit

Which type of finance is most suitable to acquire a company vehicle ?

• share capital

• mortgage

• leasing

• trade credit

Which has a lower interest rate per month (usually) ?

• bank loan (long term)

• overdraft

Which one is suitable to keep control of the business ?

• crowdfunding

• bank loan

• share capital

• venture capital

Which is a long-term source of finance ?

• overdraft

• trade credit

• share capital

• leasing

Venture capital is suitable for :

• steady businesses in reliable markets

• risky businesses in dynamic markets

• businesses that want tight control

• businesses that have been accepted for bank loans

Bank loans require :

• repayment of capital borrowed only

• repayment of capital borrowed and interest on top

• no repayment of capital borrowed

• no interest repayments

Which is NOT available to a new start-up business ?

• bank loan

• leasing

• overdraft

• retained profits

Which will have a definite end date ?

• business loan repayments

• dividend payments (out of profits)