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Worksheets

S3 Finance

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

What two factors would a business take into consideration when choosing a type of finance?

a)

How much they need

b)

What the money is needed for

c)

The type of organisation

d)

The number of shareholders

2.

Owners own savings are...

a)

Internal

b)

External

3.

Short term types of finance are paid back in less than...

a)

3 years

b)

4 years

c)

5 years

d)

2 years

4.

Long term types of finance are paid back in more than...

a)

3 years

b)

4 years

c)

5 years

d)

6 years

5.

A grant from the government does not need to be paid back

a)

True

b)

False

6.

What type of finance is this? "Buying an item now and paying for it later, usually with an initial deposit and the rest paid in installments"

a)

Leasing

b)

Hire Purchase

c)

Trade Credit

7.

What type of finance is this? "You pay a ‘rental’ amount to the owner of the product in order to use this in your business"

a)

Leasing

b)

Hire Purchase

c)

Trade Credit

8.

What type of finance is this? "Suppliers allow you to purchase goods and pay for them later – usually after 30 days"

a)

Leasing

b)

Hire Purchase

c)

Trade Credit

9.

A mortgage is used to purchase...

a)

Delivery vans

b)

Property

c)

Machinery

d)

Raw materials

10.

Select the external sources of finances

a)

Grant

b)

Owner's own savings

c)

Retained profits

d)

Bank loan

11.

What source of finance allows you to purchase goods and pay for them 30 days later?

a)

Trade Credit

b)

Hire Purchase

c)

Leasing

12.

What do you have to pay if you use an overdraft? (Pick 2)

a)

Interest

b)

Overdraft usage fee

c)

The bank

d)

An online fee