N5 Business Management - Finance

What do we call a method of finance that is secured against land or property?

• Mortgage

• Bank overdraft

• Government grant

Which of the following is a short term source of finance with a high rate of interest?

• Hire purchase

• Bank loan

• Bank overdraft

Which method of finance is only available to private or public limited companies?

• Government grant

• Bank loan

• Share issue

Which method of finance requires companies to meet certain criteria but does not need to be paid back?

• Leasing

• Government grant

• Venture capital

Which method of finance is used to purchase machinery or equipment without having to pay the whole cost at once?

• Bank overdraft

• Hire purchase

• Crowd funding

What is retained profit?

• Cash invested by the owner from their own personal funds

• Cash that is invested from family and friends

• Previous year’s profits that are reinvested in the company

What is the name of the method of finance used for large sums of cash that is paid back in monthly instalments with interest?

• Bank loan

• Venture capital

• Retain profit

What is the name of the method of finance used for higher risk start-up ventures?

• Venture capital

• Bank loan

• Government grant

What is the name of the method of finance where small sums of cash are invested from a large number of investors, usually over social media or internet sites?

• Leasing

• Crowd funding

• Venture capital

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

• Bank loan

• Mortgage

• Bank overdraft