Sources of Finance Quiz

A business angel provides finance and expertise to small business start-ups, such as organizing networking opportunities.

• TRUE

• FALSE

Spending money on a new cybersecurity system is an example of capital expenditure.

• TRUE

• FALSE

Business angels are investors who provide grant to businesses approved by the government.

• TRUE

• FALSE

Spending money on wages and salaries is an example of revenue expenditure.

• TRUE

• FALSE

An example of short-term finance is bank overdrafts.

• TRUE

• FALSE

A disadvantage of leasing is that at the end of the lease contract the hirer has to return the goods.

• TRUE

• FALSE

An advantage of using retained profit as an internal source of finance is the lack of interest charges.

• TRUE

• FALSE

Share capital is an example of an internal source of finance.

• TRUE

• FALSE

Issuing of shares as a source of finance is not available to a sole trader or ordinary partnership.

• TRUE

• FALSE

A rise in the exchange rate would directly affect the amount of interest paid by a business on a bank loan.

• TRUE

• FALSE