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WorksheetsSources of Finance
Total questions: 28
Worksheet time: 14mins
What is the most likely source of finance for a small firm?
A debenture
Issuing shares
A bank loan
What is the most likely source of finance for buying property?
Mortgage
Factoring
A bank loan
What of the following is a source of internal finance?
Selling assets
Trade credit
A bank loan
Which of these facts about venture capital is NOT true?
Venture capitalists tend to operate in fairly risky markets
Venture capitalists would be paid a share of the profits
Venture capitalists usually provide money only and have no interest in running the business
Venture capitalists usually invest large sums of money
Which of the following facts about crowd-sourcing is/are TRUE? (choose as many as apply!)
It is a method of internal fund raising
Can also be an excellent marketing tool for a business
It doesn't matter if the product launched is not successful
Great way of raising money quickly, esp. for a new business idea
Which of the following are DISADVANTAGES of selling shares as a source of funds? (select as many as appropriate)
It means limited liability for the owners
Dividends need to be paid to shareholders
Large sums of money can be raised
Does not apply to Partnerships or Sole Traders
Which of the following would be the most appropriate source of funds for a new business (which is just launching) that makes mobile phone accessories?
Retained Profit
Sale of Assets
Share Capital
Trade Credit
With leasing,ownership (a) passes to the business customer
Hire purchasing is a short term finance
True
False
Where can hire purchasing be used
Machinery
Equipment
Company car
All of above
What is a suitable form of finance for a new office building?
Mortgage
Bank loan
Trade Credit
Which of the following statements about bank loans is not true?
Preferable for short time duration
Interest rates make the loan more expensive
Easy to get
Usually cheaper than consistently using a bank overdraft
Which of the statements about retained profits is false?
You do not have to pay interest
Ideal for new businesses
Shareholders and employees could be frustrated because there is less profit to be 'shared out'
You are free to use it for any purpose
Which of the following is not true about leasing a car:
You will have the car for a certain amount of time
You will likely have a mileage restriction
You will have the option to buy the car at the end of your term
Maintenance is free
Shareholders are entitled to get interest as their income.
True
False
Which of the statements about retained profits is false?
You have unlimited amounts of money available
Shareholders and employees could be frustrated because there is less profit to be 'shared out'
You do not have to pay interest
You are free to use it for any purpose
Wealthy individuals who invest in high-potential businesses are...
Banks
Angel Investors
Shareholders
Creditors
