Sources of Finance

Money that is available to a business is known as ________

• Capital Expenditure

• Finance

• Current Expenditure

• Bank overdraft

What is a bank overdraft?

• Agreement with suppliers to give you goods on credit

• An agreement where you are not able to take out more money than is in your account

• An agreement where you are allowed to withdraw more money than is in your account up to a certain amount

• An agreement where you can withdraw more money than is in your account and you are not limited.

Short term sources of finance are more than one year

• True

• False

Expenses due is when ....

• some expenses, such as light and heat do not have to be paid immediately and can be used in the meantime to finance the business

• some expenses are due and they have to be paid straight away

True or false.... Leasing and hire purchases are the same things?

• True

• False

When you are LEASING an asset you have full ownership and use of the asset from the start?

• True

• False

Retained earnings is when....

• A business rings the bank and asks for more money

• A business sells shares to the public

• A business is financed using its profits

• A business gets money off the government which they don't have to repay

Does a grant have to be repaid?

• No, it does not have to be repaid

• yes, it does have to be repaid

• I cant remember

Give an example when you might need to take out a long-term loan?