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Sources of finance

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

What is an advantage of a business using owner's capital as a source of finance?

a)

Very low rate of interest

b)

It will bring new skills to the business

c)

It doesn't need repaying

d)

Repayment is always spread over a period time

2.
What is an advantage of a bank loan?
a)
There will be little or no interest
b)
You can pay in smaller installments
c)
They are quick and easy to arrange
d)
You don't have to pay it back
3.
What is an advantage of an overdraft?
a)
There is never interest
b)
You can pay in smaller installments
c)
They are quick and easy to arrange
d)
You don't have to pay it back
4.

What type of finance involves less profit going to the owners?

a)

Retained profit

b)

Sale of assets

c)

Overdraft

d)

Owner's capital

5.

What source of finance could lead to an unwanted takeover of the business?

a)

Sale of assets

b)

Owner's capital

c)

Trade credit

d)

Share issue

6.

What source of finance often requires no interest, equity, security or repayment?

a)

Bank loan

b)

Crowdfunding

c)

Taking on a new partner

d)

Overdraft

7.

Which of these sources of finance is likely to charge the most interest?

a)

Trade credit

b)

Retained profit

c)

Bank loan

d)

Overdraft

8.

What source of finance is not available to unlimited companies?

a)

Taking on a new partner

b)

Trade Credit

c)

Share Issue

d)

Retained Profit

9.

What source of finance will lead to the owners taking a smaller share of the profits?

a)

Bank loan

b)

Taking on a new partner

c)

Crowdfunding

d)

Trade Credit

10.

Which of the these sources of finance is least useful for dealing with cash-flow issues?

a)

Trade Credit

b)

Crowdfunding

c)

Overdraft

d)

Owner's Capital