WorksheetsSource of Finance - A Level
Total questions: 15
Worksheet time: 8mins
Internal Source of Finance except
Retained Profit
Sales of Asset
Sales of Share
Owner's Savings
Two methods of obtaining a long term asset.
Bank Loan
Leasing
Overdraft
Hire Purchase
Issued by companies to raise debt finance, often with a fixed rate of interest.
Shares
Debentures
Grants
Debt Factoring
Providing financial services for poor and low-income customers who do not have access to banking services
Grants
Subsidies
Microfinance
Crowd Funding
Finance for small or start up businesses.
Microfinance
Grants
Bank Loans
Crowd Funding
Bank agrees to a business borrowing up to an agreed limit as and when required.
Bank Loan
Overdraft
Creditors
Factoring
Long term loans need to be repaid for
Within a year
More than a year
More than five years
The use of small amounts of capital from a large number of individuals to finance a new business venture.
Microfinance
Crowd Funding
Venture Capital
Overdraft
A detailed document giving evidence about a new or existing business, and that aimed to convince external lenders and investors to extend finance to the business.
Business Profile
Business Proposal
Business Plan
Factors influencing finance choice.
Amount required
Legal structure
Interest and other cost
Flexibility
Working capital is defined as:
the capital required to start up a business
the capital needed to purchase buildings and machinery
the capital needed to pay for raw materials, day-to-day running costs and credit offered to customers
all forms of finance
The disadvantage of relying on internal finance is that:
there is an increase in the liabilities or debts of the business
there is a risk of loss of control by the original owners
there is a high direct cost to the business
it will limit the availability of finance for expansion
Debt factoring involves:
selling claims on debtors to a third party
insisting that debtors settle their debts in cash
extending credit to customers
paying off the debts of the business
A firm that is purchasing inventory for resale is most like to use what form of finance:
trade credit
bank loan
leasing
debentures
Melula plans to start a social enterprise offering personal care to the elderly in a developing economy country. She has no savings. The most likely source of finance for her is:
debenture
debt factoring
Microfinance
extending credits
