Y8 Business Studies - C8 Financing Business Activity

Below are the reasons why business need money, EXCEPT...

• To apply for government subsidy

• To pay for start-up capital

• To fund a research and development (R&D)

• To pay for day-to-day expenses

The money required to start a business is called...

• Beginning expenses

• Beginning capital

• Start-up capital

• Start-up expenses

A business needs to keep its money in the time of difficulties because...

• to do more charity.

• to hire more workers.

• it is difficult to get bank loan.

• to buy more goods.

What is capital expenditure?

• Money paid to the business owner as dividend

• Money spent on charity.

• Money spent on day-to-day expenses.

• Money spent on assets and expanding the business.

What is revenue expenditure?

• Money paid to the business owner as dividend

• Money spent on charity.

• Money spent on day-to-day expenses.

• Money spent on assets and expanding the business.

What is the example of revenue expenditure?

• Paying salary for employees.

• Buying delivery vehicle.

• Paying for factory renovation.

• Buying a machine for factory.

What is the example of capital expenditure?

• Paying for rent and electricity.

• Adding a new office beside a factory.

• Buying raw material for production.

• Paying a manager's salary.

Which one is the example of internal financing?

• Government grants and subsidies.

• Bank loans.

• Issue of shares.

• Owner's saving.

Which one is the example of external financing?

• Sale of existing assets.

• Bank loans.

• Retained profit

• Owner's saving.

Choose the correct answer.

• Short-term finance = Up to 10 years

• Medium-term finance = Between 3 to 10 years

• Medium-term finance = Between 1 to 5 years

• Long-term finance = Up to 8 years