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Worksheetssource of finance
Total questions: 20
Worksheet time: 10mins
What of the following is a source of internal finance?
Selling assets
Trade credit
A bank loan
A short-term source of finance from a bank that usually is only used in an emergency/when needed
Overdraft
Loan
Share capital
Credit card
True or false - crowdfunding is usually only used for new business start-ups/concepts and is therefore inappropriate for existing large, profitable businesses
True
False
What does 'short-term' source of finance mean?
A credit or loan extended to a business for less than one year
A credit or loan extended to a business for more than one year
What does 'long-term' source of finance mean?
A credit or loan extended to a business for less than one year
A credit or loan extended to a business for more than one year
Which one of these is a short-term source of finance?
Trade Credit
Issue of Shares
Leasing
Hire Purchase
Which of these is a long-term source of finance?
Overdraft
Selling debentures
Factoring of debts
Which is an advantage of factoring of debts?
You get all your money back
You lose some money from loans, but you get the money quickly
You get more money than you leant in the first place
Which is an advantages of issuing shares as a source of finance?
You might lose control of the company
You don't have to pay back the money
This is only possible for limited companies
Why do businesses use 'leasing' as a source of finance?
You own the non-current asset outright
You don't have to have all the money at the start - you can pay in installments
What is a trade credit?
When a business gets money through trading
When the business gets a loan from the bank
When a business delays payment to suppliers
When the supplier offers money to the business
What is micro-finance?
providing financial services to poor people not served by traditional banks
providing services to people not served by banks
Banks loans for non-developing countries
This is the cash that is generated by the business when it operates successfully
Retained profits
Share capital
Owner savings
