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WorksheetsSources of finance
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
What does internal mean?
a)
A source from within the business
b)
A source from outside the business
2.
What does external mean?
a)
A source from within the business
b)
A source from outside the business
3.
Which is an example of an internal source of finance?
a)
Owners' Funds
b)
Hire Purchase
c)
Leasing
d)
Trade credit
4.
Which is an example of an external source of finance?
a)
Owners' Funds
b)
Sale of assets
c)
Retained profits
d)
Bank loan
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 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
7.
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
8.
What is a disadvantage of a friends and family loan?
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.
What is the most likely source of finance for buying a new IT system?
a)
Mortgage
b)
Overdraft
c)
A bank loan
10.
What is a suitable form of finance for a new office building?
a)
Mortgage
b)
Bank loan
c)
Trade Credit
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