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WorksheetsSources of Finance
Total questions: 17
Worksheet time: 9mins
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 is an advantage of an overdraft?
There is never interest
You can pay in smaller installments
Useful for relatively small sums and short term finance
You don't have to pay it back
Which of the following are DISADVANTAGES of selling shares as a source of finance? (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
Short Term sources of finance usually require money to be repaid within.....
1 week
1 month
6 months
1 year
Long Term sources of finance are for when the time needed to pay the money back is more than...
6 months
1 year
5 years
10 years
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
A loan that has to be repaid quickly is called an
Underdraft
Overdraft
Oversight
Undercraft
