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Worksheets3.1 Sources of Finance
Total questions: 20
Worksheet time: 18mins
Name
Class
Date
1.
This is the finance that is used to buy fixed assets like Machinery, equipment and buildings.
a)
Revenue Expenditure
b)
Capital Expenditure
c)
Fixed Costs
d)
Semi- Variable Costs
e)
Indirect Costs
2.
This financial service involves an external party taking over the collection of money owed by debtors
a)
Debt factoring
b)
Selling Assets
c)
Personal Funds
d)
Leasing
e)
Loan Capital
3.
This involves a contract with a finance company to acquire, but not necessarily to purchase, assets over the medium term.
a)
Leasing
b)
Overdrafts
c)
Micro-Finance
d)
Debt Factoring
e)
Loan Capital
4.
This is the amount of money available for the day-to-day running of a business.
a)
Venture Capital
b)
Working Capital
c)
Share Capital
d)
Loan Capital
e)
Microfinance
5.
This is the finance paid for in installments by the business. The item is not owned until all payment has been made.
a)
Hire purchase
b)
Leasing
c)
venture capital
d)
overdraft
e)
Microfinance
6.
Long time loans. Like shares, also have a certificate. But, they don't get voting rights. Holders receive interest payments.
a)
Hire purchase
b)
Leasing
c)
Share Capital
d)
Debentures
e)
Indirect capital
7.
When money is withdraw from the bank account and the available balance goes below zero
a)
Micro-Finance
b)
Overdraft
c)
Government subsidies
d)
Share capital
e)
Loan Capital
8.
This is the compensated distribution of valuable property that can be tangible or intangible.
a)
Micro-Finance
b)
Overdraft
c)
Selling Assets
d)
Share capital
e)
Loan Capital
9.
This source of finance is the assistance given to business, but with intention of helping society.
a)
Venture Capital
b)
Leasing
c)
Overdrafts
d)
donations
e)
government subsidy
10.
This is the supplies to allow goods or services to be paid for one or two months after delivery.
a)
Opportunity costs
b)
Donation
c)
Trade credit
d)
Fixed costs
e)
Loan Capital
11.
This is a form of high-risk, usually in the form of loans or shares, invested by venture capital firms. It usually happens at the start of a business idea.
a)
High-risk capital
b)
Business Capital
c)
Venture capital
d)
Human capital
e)
External economic capital
12.
This refers to government financial gifts to support business activities. Are usually offered to eligible businesses as one-off payments and do not need to be repaid.
a)
Government Grants
b)
Government subsidies
c)
Overdrafts
d)
Debt Factoring
e)
Hire Purchase
13.
This refers to financial gifts or donations in support of an event or a business venture in return for dominant marketing exposure of the sponsor’s name.
a)
Donations
b)
Business Angels
c)
Sponsorship
d)
Selling Assets
e)
Trade Credit
14.
This is a source of funds that comes from the individual that owns the business, i.e. sole trader
a)
Sponsorship
b)
Personal Funds
c)
Grants
d)
Overdraft
e)
Family and Friends
15.
It is profit kept in the company rather than paid out to shareholders as a dividend.
a)
Net Profit
b)
Venture Capital
c)
Operating profit
d)
overdraft
e)
Retained Profits
16.
Before a company can raise equity capital, what must it obtain to execute the sale of stock?
a)
Permission
b)
Status in market
c)
Contract with government
d)
Collateral
e)
Overdrafts
17.
This is categorized into internal sources of finance. Whilst this source of finance not explicitly featured in the syllabus, this is popular and in many cultures, especially for sole traders and partnerships.
a)
trade credit
b)
business angels
c)
family and friends
d)
retained profits
e)
overdrafts
18.
This is individuals who are wealthy and invest in high-risk business projects with high profit potential. They take huge risks because they invest their own personal funds, so if the project fails, they lose every dollar invested.
a)
Working capital
b)
Business angels
c)
Micro-Finance
d)
Debt Factoring
e)
Share-capital
19.
Gearing is also know as
a)
Lethargy
b)
Leverage
c)
Loaniness
d)
Leatherage
20.
Multi Answer - An important consideration for which source of finance is
a)
The legal structure of the business
b)
The cost to repay
c)
The time the money is required
d)
The amount of loans already (i.e. GEARING)
e)
The use of the finance
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