Financial Management Week 4 Quiz

Which of the following best describes finance?

• Funds for a business

• Customers for a business

• Profits for a business

What is the most likely source of finance for a small firm?

• A debenture

• Issuing shares

• A bank loan

Which option is an example of short term finance?

• Mortgage

• Factoring

• A bank loan

4

What is the most likely source of finance for buying premises?

• Mortgage

• Factoring

• A bank loan

What is the most likely source of finance for buying a new IT system?

• Mortgage

• Factoring

• A bank loan

Which of the following options is a source of internal finance?

• Selling assets

• Trade credit

• A bank loan

What is interest the reward for?

• Borrowing

• Lending

• Trading

What do lenders ask for as a guarantee that a loan will be repaid?

• Interest

• Collateral

• References

What is someone who lends money called?

• Borrower

• Debenture

• Creditor

Where do grants usually come from?

• Private companies

• Charities or the government

• Stakeholders