Sources of Finance - Definitions

Which is the correct definition for internal source of finance

• Sources of money for businesses that may have to be repaid with immediately or fairly quickly, such as an overdraft, usually within a year.

• Sources of money for businesses that are borrowed or invested typically for more than a year

• Money generated by the business or its current owners

• Money raised from sources outside the business (e.g. share issue, leasing, bank loan)

Which is the correct definition for external source of finance

• Sources of money for businesses that may have to be repaid with immediately or fairly quickly, such as an overdraft, usually within a year.

• Sources of money for businesses that are borrowed or invested typically for more than a year

• Money generated by the business or its current owners

• Money raised from sources outside the business (e.g. share issue, leasing, bank loan)

Which is the correct definition for a short term source of finance?

• Sources of money for businesses that may have to be repaid with immediately or fairly quickly, such as an overdraft, usually within a year.

• Sources of money for businesses that are borrowed or invested typically for more than a year

• Money generated by the business or its current owners

• Money raised from sources outside the business (e.g. share issue, leasing, bank loan)

Which is the correct definition for a long term source of finance?

• Sources of money for businesses that may have to be repaid with immediately or fairly quickly, such as an overdraft, usually within a year.

• Sources of money for businesses that are borrowed or invested typically for more than a year

• Money generated by the business or its current owners

• Money raised from sources outside the business (e.g. share issue, leasing, bank loan)

Which source of finance is this definition: the practice of buying goods and services now and paying for them later

• Trade Credit

• Hire Purchase

• Leasing

• Retained Profit

Which source of finance is this definition: The buying of equipment by paying in instalments, usually including interest. You own the asset at the end of the instalments

• Trade Credit

• Hire Purchase

• Leasing

• Retained Profit

Which source of finance is this definition: Obtaining the use of equipment or vehicles and paying a rental or leasing charge over a fixed period. At the end of the period the asset is given back

• Trade Credit

• Hire Purchase

• Leasing

• Retained Profit

Which source of finance is this definition: The profit left after all deductions, including dividends, have been made. This is 'ploughed back' into the company as a source of finance

• Trade Credit

• Hire Purchase

• Leasing

• Retained Profit

Which is the correct definition of: Peer to Peer Lending

• Where individuals lend to other individuals without prior knowledge of them, on the internet

• a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

• A plastic card used to make purchases now and pay for them later.

• Money given to firms by the government which does not have to be repaid.

• Money received from private investors who provide funds in exchange for a return on investment and/ or a share of ownership

Which is the correct definition of: Loan

• Where individuals lend to other individuals without prior knowledge of them, on the internet

• a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.

• A plastic card used to make purchases now and pay for them later.

• Money given to firms by the government which does not have to be repaid.

• Money received from private investors who provide funds in exchange for a return on investment and/ or a share of ownership