Sources of finance

Retained profit is a good source of finance for a start-up business

• True

• False

Private limited companies are able to raise more money through the sale of shares than a public limited company.

• True

• False

What two sources of finance would you suggest to a business that is having cashflow problems

• Overdraft

• Business Angels

• Trade Credit

• Leasing

A business requires a specific piece of machinery for a one-off project which will last six months to a year. What source of finance would you recommend?

• Trade credit

• Retained profit

• Leasing

• Crowdfunding

Which of the following do not require interest payments?

• Retained profit

• Share capital

• Crowdfunding

• Sale of assets

• Loan

What do business angels offer that micro-finance does not?

(a)  

Leasing means that a business will never own the item leased

• True

• False

Which of the following would not be an appropriate source of finance for a partnership

• Retained profit

• Share capital

• Personal finances

• Sale of assets

Overdrafts are a good source of finance to help overcome long-term cashflow short-falls

• True

• False

Why might entrepreneurs be reluctant to seek funding from business angels?