5.1 Review

What is working capital for?

• Large purchases

• Buying non-current assets

• Paying bills, suppliers or wages

Every business is financed by Debt or E (a)   .

Choose the External source of finance:

• Retained Profit

• Grant

• Selling assets

• Owner's funds

What source of finance has small loans given to people in developing countries?

• Selling shares.

• Kickstarter.com

• Crowdfunding

• Micro financing

Trade Credit is interest free

• True

• False

What is a benefit of a bank loan?

• No need to pay anything back

• Quick and easy

• No interest

• Good for very large amounts of money

What is a quicker and easier version of a bank loan?

(a)  

What do we call it if a company sells its cars to buy raw materials?

• External financing

• Selling assets

• Hire to buy

• Overdraft

What is it called when a business will rent an asset and then own it after payments are complete?

• Hire to buy

• Hiring

• Leasing

• Hire purchase

Which one of these is the LEAST important factor to be considered when deciding on what kind of finance to choose?

• Type of business

• Loans the company already has

• Size of business

• The marketing mix