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Worksheetsbusiness finance : needs & sources
Total questions: 10
Worksheet time: 5mins
Business finance is needed to
Establish a business
Run a business
Expand a business
All of the above
Internal sources of capital are those that are
generated through outsiders such as suppliers
generated through loans from commercial banks
generated through issue of shares
generated within the business
Which is not an capital expenditure example
Computer
Rent
Buildings
Furniture & fixtures
Which is an example of Revenue expenditure
Motor Van
Gym equipment
Salary
Premises
Which are the internal source of finance
Sales of inventories to reduce inventory levels
Issue of shares
Bank loan
Selling Debentures
What do you mean by retained profits?
Profit which occur during the year
Profit kept in the business after the owners have taken their share
What shareholders get in return on investment?
Interest
Rent
Debentures
Dividend
State the advantage of Owners savings
No interest is paid
This makes better use of the capital tied up in the business
Permanent source
Which of the following is the most suitable reason for using personal finance?
Insufficient internal sources of finance
Insufficient external sources of finance
There is no interest obligation
To please the owners (shareholders) of a company
Which of the following is not a feasible source of finance for an ordinary partnership?
bank loans
Sale and leaseback
Debt factoring
Initial public offering
