WorksheetsNational 5 Bus Mgt Sources of Finance
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
Which source of finance is NOT available to ALL types of business organisations?
a)
Selling shares
b)
Selling unwanted assets
c)
Grants
d)
Leasing
2.
Which source of finance is ONLY available to an Ltd or PLC company?
a)
Selling shares
b)
Bank loan
c)
Grants
d)
Retained profits
3.
What is the name for a large amount of money borrowed from a bank to pay for property/premises?
a)
Overdraft
b)
Loan
c)
Mortgage
d)
Debt
4.
Grants - which statement is false?
a)
Grants are only given out if criteria has been met
b)
Grants do not need to be repaid
c)
Grants only have a low rate of interest applied
d)
Grants are mainly issued by local and national Government and the EU
5.
What name is given to the monthly amount of money paid back after a bank loan has been taken out?
a)
Deposit
b)
Withdrawal
c)
Instalment
d)
Standing order
6.
Which source of finance involves getting rid of unwanted items that the company owns?
a)
Sale of liabilities
b)
Sale of assets
c)
Jumble sale
d)
Sale of equity
7.
Name the person who likes to take on risky investments in return for part ownership of the business?
a)
Adventurer
b)
Investor
c)
Donor
d)
Venture Capitalist
8.
Which source of finance is only available to organisations in the public sector?
a)
Grants
b)
Selling shares
c)
Taxes
d)
Hire purchase
9.
What source of finance involves paying a deposit for an asset then making monthly payments, after which you own the asset outright.
a)
Leasing
b)
Renting
c)
Hire purchase
d)
Savings
10.
What is NOT a benefit of leasing?
a)
Can get to use asset quickly
b)
You own it after a certain period of time
c)
Asset is replaced if it becomes obsolete
d)
Do not need to pay out a large sum of money up front
11.
Which is NOT a disadvantages of selling shares to raise finance?
a)
Dividends are paid to shareholders
b)
Ownership is diluted and original shareholders have less control
c)
It is more expensive as interest must be paid
d)
Fees to produce legal share documents can be high
12.
Which source of finance's benefits are that it can be repaid over a long period of time and can be arranged quickly.
a)
Bank loan
b)
Sale of shares
c)
Retained profits
d)
Owner's savings
13.
Which source of finance do most sole traders use at the start of the business?
a)
Own savings
b)
Retained profits
c)
Donors
d)
Debentures
14.
Fill in the blank - a disadvantage of using retained profits as a source of finance is that the money cannot be _____ for something else.
a)
used
b)
deposited
c)
borrowed
d)
controlled
15.
What statement shows the knowledge you need for sources of finance topic at National 5?
a)
description, costs and benefits
b)
Most popular and least popular sources of
100 %
