WorksheetsIGCSE Business 4 ELS (sources of Finance)
Total questions: 32
Worksheet time: 24mins
Name
Class
Date
1.
What is a source of finance?
a)
A method of earning incomes
b)
The different ways a business can fund themselves
2.
Which is an example of an external source of finance?
a)
Owners' Funds
b)
Hire Purchase
c)
Retained profits
d)
Sale of assets
3.
Which is an example of an external source of finance?
a)
Owners' Funds
b)
Sale of assets
c)
Retained profits
d)
Bank loan
4.
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
5.
What is an advantage of owners' funds?
a)
There will be little or no interest
b)
You can pay in smaller installments
c)
They take a long time to arrange
d)
You don't have to pay it back
6.
What is an advantage of friends & family loan?
a)
There will be little or no interest
b)
You can pay in smaller installments
c)
They take a long time to arrange
d)
You don't have to pay it back
7.
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
8.
What is a disadvantage of using owners' funds?
a)
It means you have no savings
b)
It can lead to personal conflicts
c)
It can take a long time to arrange
d)
They can be recalled immediately
9.
Main source of finance for sole traders and partnerships. Using your own money.
a)
Bonds
b)
IPO
c)
Personal Funds
d)
Trade Credit
10.
The first time that the stock of a private company is offered to the public.
a)
Stock Sale
b)
Trade Offering
c)
TM Trading
d)
IPO
11.
An unsecured loan issued by a company backed by general credit rather than specified assets.
a)
Debentures
b)
Bonds
c)
Loan Capital
d)
Grants
12.
The value of profits the business keeps to use within the business.
a)
Share Capital
b)
Grants
c)
Personal funds
d)
Retained profit
13.
The credit extended to you by suppliers who let you buy now and pay later.
a)
Trade Credit
b)
Loan Capital
c)
Visa
d)
Retained Profit
14.
A fund tied to a bank account that can be used to cover a deficit in the account.
a)
Mommy
b)
Overdrafts
c)
Daddy
d)
Coverdrafts
15.
Which is not an advantage of debt financing?
a)
You get to keep 100% of business
b)
Interest is tax deductible
c)
You don't have to have collateral
d)
You can set up manageable payments
16.
Wealthy individuals who invest their personal capital in start-up companies in return for an equity stake.
a)
Business Angels
b)
Business Devils
c)
Grant Givers
d)
Whales
17.
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
18.
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
19.
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
20.
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
21.
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
22.
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
23.
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
24.
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
25.
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
26.
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
27.
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
28.
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
29.
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
30.
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
31.
Gearing is also know as
a)
Lethargy
b)
Leverage
c)
Loaniness
d)
Leatherage
32.
What is the most likely source of finance for buying property?
a)
Mortgage
b)
Factoring
c)
A bank loan
100 %
