Sources of Finance for Business

Which of these is a medium term source of finance

• Leasing

• Trade Creditors

• Sale & Leaseback

• Credit cards

Hire Purchase is a

• short term source of finance

• medium term source of finance

• long term source of finance

How long is a medium source of finance for?

• <1 year

• 1-5 years

• 5 + years

What is an example of an accrued expense

• owing a supplier money

• buying a house

• a service such a an electricity bill

• equipment

What would a new business need money for?

• machinery

• equipment

• advertising

• all of the above

Which of the following is a short term source of finance?

• hire purchase

• mortgage

• trade creditors

• leasing

What source of finance should a business choose when buying motor vehicles?

• short term

• medium term

• long term

Ownership does not pass to the purchaser until the last instalment is made in...

• leasing

• credit card

• hire purchase

When_________ the business never owns the asset

• accrued expense

• trade creditor

• leasing

• mortgage

A mortgage is used to pay for

• a property

• a car

• equipment

• non of the above