BUSINESS FINANCE

What is start up capital?

• Finance needed before starting trading.
• Finance paid after trading.
• Finance paid to banks.

Working capital is sometimes called as...

• life of money
• life of blood
• life of soul
• life of human

An example of working capital is...

• pay electricity bills.
• pay machinery.
• pay rent cost.
• pay insurance.

What is capital expenditure?

• Money spent for fixed assets which last about 6 months.
• Money spent for fixed assets which last about for more than a year.
• Money spent on a day-to-day basis.
• Money spent per hour rate.

What is asset?

• An item of property owned by a person or company
• An item owned by a business that lasts for several years.

What is revenue expenditure?

• Money spent on monthly expenses
• Money spent on hour to hour expenses
• Money spent on day to day expenses
• None of the above

What is NOT a source of Internal finance?

• Retained profit
• Sale of existing assets
• Issue of shares
• All are sources of Internal finance

This is the cash that is generated by the business when it operates successfully

• Retained profits

• Share capital

• Angel investor

• Owner savings

Which of the statements about retained profits is false?

• You have unlimited amounts of money available

• Shareholders and employees could be frustrated because there is less profit to be 'shared out'

• You do not have to pay interest

• You are free to use it for any purpose

Which of the following is NOT usually considered a personal source of finance.

• Savings

• Redundancy payments

• Crowdfunding

• Credit card