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WorksheetsSources of business finance
Total questions: 16
Worksheet time: 8mins
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
Which of the following is NOT usually considered a personal source of finance.
Savings
Redundancy payments
Crowdfunding
Credit card
Which of the following statements about personal sources of finance is false?
Often cheaper in the long-term
Less 'red tape' or delay in getting the cash
Less personal financial risk for the entrepreneur
May be harder to raise large amounts
An amount of money that is paid back within an agreed amount of time, with interest
Bank loan
Angel investment
Overdraft
Retained profit
What do Angel Investors and Crowdfunders have in common?
They require something in return for their investment
They charge interest on money invested in the buisness
They become part-owners of the business
They are incredibly wealthy
Case study: Apple plans to develop a prototype for an iPhones with a flexible display. Which of the following sources of finance would be most appropriate?
Retained profits
Selling shares
Crowdfunding
Bank loan
Japan increased its tariff on U.S. made cars by 50%. The U.S. raised the tariffs on Japan’s products such as cameras. Which of the following would result from the change in tariffs on cars and cameras?
The standard of living would remain the same.
The standard of living would decrease.
The standard of living would be unpredictable.
The standard of living would increase.
Which of the following statements about overdrafts is not true?
Short term source of finance
It's really a small, short term loan
It's flexible, in that it can be used whenever it is needed
Cheap - the interest rate is usually lower than that of a long-term bank loan
What type of finance involves less profit going to the owners?
Retained profit
Sale of assets
Overdraft
Owner's capital
What is an advantage of a business using owner's capital as a source of finance?
Very low rate of interest
It will bring new skills to the business
It doesn't need repaying
Repayment is always spread over a period time
What is the most likely source of finance for a small firm?
A debenture
Issuing shares
A bank loan
