Unit 3 (BTEC Business L3) LO D

What type of finance is paid back in under one year?

• Long

• Medium

• Short

• Internal

A source of finance that comes from within the business is called an ______ source

• External

• Internal

• Short

• Long

Retained profits is an internal source of finance

• True

• False

Current assets minus current liabilities equals...

• Gross assets

• Current assets

• Net current liabilities

• Net current assets

A disadvantage of selling assets is that interest is charged to the business

• True

• False

Owner's capital is an external source of finance

• True

• False

How many external sources of finance have we discussed?

• 13

• 12

• 3

• 9

Which of these is an advantage of a loan?

• No interest charged

• Secured against an asset

• Could improve sales

• No loss of ownership

Sale of assets is an external source of finance

• True

• False

_____________ involves many people investing small amounts of money in a business, usually online.

• Venture capital

• Crowd funding

• Debt factoring

• Mortgages