F5 Sources of finance/ Costs

Which of the following sources of finance requires the payment of interest?

• Debt factoring

• Selling shares

• Mortgage

• Leasing

Which of the following sources is considered to be a long term form of renting ?

• Leasing

• Bank loan

• Debt factoring

• Crowd funding

Which of the following is considered an internal source of finance?

• Issuing shares

• Bank loan

• Selling assets

• Loan from family member

Which of the following describes working capital?

• Working capital is the money used to run the business on a day to day basis

• Working capital is the profit made by a business.

• Working capital is the money used to start a business

• Working capital is the measure of a company's long-term debt.

Which source of finance allows the company to buy fixed assets and pay for them in monthly

installments with interest?

• Lease
• Mortgage
• Hire Purchase
• Credit card

Which source of finance can result in a loss of control over the business?

• Credit management

• Crowdfunding
• Issuing shares

• Loans

Break even refers to the point where

• Profit > Loss

• Revenue = Costs

• Revenue > Costs

• Costs> Revenue

Which of the following is an example of a fixed cost?

• Commission

• Raw materials

• Piece rate

• Rent

The formula for margin of safety is

• Profit - expenses

• Selling price - variable cost

• Actual sales - breakeven sales

• Revenue - costs

The formula for contribution is

• Revenue - sales

• Selling price - variable cost

• Fixed cost + variable cost

• Fixed cost/ variable cost