Finance summary Quiz

What is finance?

• Money

• Time

Why does a new business need finance?

• Rent buildings or buy equipment

• To improve efficiency

Why might an established building need finance?

• To expand and improve

• To come up with a new idea

What are INTERNAL sources of finance?

• Money available from WITHIN the business

• Money available from OUTSIDE the business

Which is NOT an internal source of finance?

• Bank loan

• Owners own bank account

• Retained profits

• Selling assets

Which is NOT an external type of finance?

• Owners OWN money

• Friends & family

• Bank loans & Overdrafts

• Venture capitalists

What is trade credit?

• When you have some time before you have to pay for supplies you buy

• When a tradesman gets a bank loan

What is Hire purchase?

• When you pay a little every month until you own it

• When you rent it but never own it

Why might a government give a business a grant?

• To help improve employment in an area

• To make more money themselves

Choosing the right TYPE of finance

• Is different depending on what type of business you are

• Is the same for every business