LO5 Sources of finance

If you advertised your intended new business on different social media platforms and asked a large number of people to invest money into the business, you would be looking for which source of capital?

• A group loan

• Business angel financing

• Crowdfunding

• Social media funding

What is the name given to individuals who donate money to a crowdfunded project?

• Lenders

• Owners

• Shareholders

• Sponsors

A sole trader needs additional capital to help to set up a new business. The sole trader does not wish to pay any interest or sign a formal contract.

Which of the following sources of finance should they avoid?

• Borrow from a friend or family

• Gift from their sister

• Loan from a bank

• The sole traders own savings

Which of the following is a feature of a small business grant?

• A limited amount of funds are generally available

• Only sole traders can apply for a grant

• The grant provider will ask for a royalty fee

• The need to make monthly repayments to repay the grant

What is a benefit from using a business angel?

• Can offer knowledge and expertise

• They don't want any form of ownership of your business

Which of the following is an example of a variable cost for a coffee shop?

• Buildings insurance

• interest on a start up loan

• Milk

• Newspaper advertising

If total revenue is equal to total cost, a business will:

• Break even

• Increase prices

• Make a loss

• Make a profit

What is the correct formula to calculate Total revenue

• PRICE X QUALITY

• PRICE X QUANTITY

• TOTAL COSTS - TOTAL REVENUE

• PROFIT - LOSS

What word must you include when describing a fixed or variable cost?

• Output

• input

• money

• finance

Which famous clothes business stopped sales in the UK this week?

• Nike

• Adidas

• Gap

• Schuh