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WorksheetsSources of Financing
Total questions: 10
Worksheet time: 5mins
These are a form of ordinary shares, which are entitled to a dividend only after a certain date or if profits rise above a certain amount.
Equity Shares
Deferred ordinary shares
Retained earnings
Bonus shares
It provides a way of raising new share capital by means of an offer to existing shareholders, inviting them to subscribe cash for new shares in proportion to their existing holdings.
Right issue
Dividend shares
Equity sharers
Retained earnings
Have a fixed percentage dividend before any dividend is paid to the ordinary shareholders.
Bonus shares
Common shares
Preference shares
Retained earnings
It is long-term debt capital raised by a company for which interest is paid, usually half yearly and at a fixed rate.
Loan shark
Loan Stock
Bank loan
Bonds
Defined as the written acknowledgement of a debt incurred by a company, normally containing provisions about the payment of interest and the eventual repayment of capital.
Bond
Mortgage
Loan stock
Debenture
A loan at a variable rate of interest is sometimes referred to as
Fixed rate
Floating rate loan
Variable rate
Lien
It is an agreement between two parties, the "lessor" and the "lessee".
Franchise
Lease
Contract
Agreement
These are lease agreements between the user of the leased asset (the lessee) and a provider of finance (the lessor) for most, or all, of the asset's expected useful life.
Franchise
Finance franchise
Finance Lease
Lease
It is similar to leasing, with the exception that ownership of the goods passes to the hire purchase customer on payment of the final credit installment, whereas a lessee never becomes the owner of the goods.
Hire loan
Hire credit
Hire purchase
Hire lease
It is money put into an enterprise which may all be lost if the enterprise fails
Initial capital
Venture capital
Working capital
Owners equit
