Sources of Finance

Which of these sources of funding do NOT need to be paid back?

• Personal loans
• Credit cards
• Crowdfunding contributions
• Grants and scholarships

Which of these sources of funding is MOST likely to be used to purchase property?

• Mortgage
• Savings account
• Personal loan
• Credit card

What is the main benefit of leasing a car?

• Guaranteed ownership of the vehicle after a set period.
• Higher insurance costs and limited vehicle choices.
• Increased maintenance responsibilities and fees.
• Lower monthly payments and access to a new vehicle without a large upfront cost.

Which of these is a risk associated with donating towards crowd funding?

• Project failure or non-delivery of promised rewards.
• Guaranteed return on investment.
• Delayed access to funds after donation.

• Tax deductions for all contributions.

Which of these are paid to shareholders?

• Dividends
• Stock buybacks
• Capital gains
• Interest payments

Which of these is an example of capital expenditure?

• Paying employee salaries for the month.
• Purchasing a new machine for manufacturing.
• Buying office supplies for daily operations.
• Setting up a direct debit for monthly utility bills.

Which of these is often a condition of a government grant?

• Immediate cash payout
• Use of funds for designated purposes - for example: community work

• No reporting requirements
• Funds can be used for any purpose

Which of these would be an example of owner's capital?

• Loan from a bank
• Revenue from sales
• Gift from a friend
• Initial investment by the owner

Which of these is an advantage of debt factoring?

• Immediate cash flow
• Lower interest rates

• Longer payment terms
• Increased debt burden

Which TWO of these would be examples of a current asset?

• Inventory
• Accounts Receivable
• Cash
• Long-term Investments