AQA GCSE Business: Topic 6: Finance

1. 1. Which of the following is an example of an internal source of finance?

• A) Bank loan

• B) Sale of assets

• C) Government grant

• D) Venture capital

2. 2. Which of the following is an external source of finance?

• A) Retained profits

• B) Sale of old equipment

• C) Bank overdraft

• D) Owner’s personal savings

3. 3. What are owner’s funds?

• A) A grant from the local council

• B) Sales revenue from a product

• C) Money the owner invests into the business

• D) A type of short-term loan

4. 4. Why might a business sell its assets?

• A) To reduce profit

• B) To raise finance internally

• C) To pay higher wages

• D) To increase spending

5. 5. What is venture capital?

• A) Money invested by someone in return for a share in the business

• B) A type of overdraft

• C) A government loan

• D) A free source of finance

6. 6. What is share capital?

• A) Money borrowed from customers

• B) Finance raised by issuing shares in a company

• C) Money given by the government

• D) Profit kept in the business

7. 7. What does retained profit mean?

• A) Profits shared with customers

• B) Profits spent on wages

• C) Profits kept in the business instead of being paid to owners

• D) Profits paid to the government

8. 8. What is trade credit?

• A) A loan from the bank

• B) Buying goods now and paying for them later

• C) Selling shares to customers

• D) Government funding

10. 9. What is a government grant?

• A) Money that must be repaid to the government

• B) Finance given by the government that doesn’t need to be repaid

• C) A form of trade credit

• D) Money borrowed from teh government

10. 10. Which of the following is an example of a cash inflow

• A) Paying staff wages

• B) Buying raw materials

• C) Receiving payment from a customer

• D) Paying rent