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WorksheetsSources of finance
Total questions: 19
Worksheet time: 10mins
There will be little or no interest
You can pay in smaller installments
They take time to arrange
You don't have to pay it back
What is a disadvantage of using an overdraft?
Higher interest rates
You only pay interest while using it
It can be paid off quickly
You can't use it in the first year of trading
What is an advantage of owner's capital?
There will be interest
You can pay in smaller installments
They take a long time to arrange
You don't have to pay it back
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
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
Finance needed to create and open your business = ???
Fixed costs
Working capital
Go finance
Start up finance
A term used to describe renting assets = ???
Leasing
Trade debtor
Current asset
Working capital
A supplier lets you buy now and pay later = ???
Trade credit
Sales revenue
Inventory
Dividend
Numerous people invest small amounts into your business. Often via a website = ???
Squadfunding
Groupfunding
Crowdfunding
Friendfunding
What type of business can issue shares?
A co-opoerative
A limited company
A partnership
A sole trader
A cost that occurs all the time while the business is operating normally
Start-up cost
Running Cost
Assets are......
Items that the business owns
Items that the business owes money for
Baby donkeys
One advantage of trade credit is ...
You never pay for the goods
You are able to sell the goods and then pay for the supplies used to make them
You rent the items paid for
the supplier may charge
more for goods
A downside to issuing shares to new investors is....
The amount is treated as debt
Dividends don't need to be paid
Cash flow worsens
They have some control over your business
Which of these sources of finance is likely to require security in order to be obtained?
Bank Loan
Government grant
Share capital
Sale of assets
Which of the following statements about Leasing is NOT true
You never own the product being leased
You have to pay every month
The company leasing the product will pay for some maintenance
You will end up owning the item after a year or two
What is a disadvantage of inviting a new partner to join a partnership?
They may bring new expertise
They will share the workload
They will get a share of the profits
They wil have new ideas
If you spend more than you have left in the bank, you are using an
(a)
A disadvantage of selling assets is ....
There is a good market for second hand machinery
If you need to use the asset in future, you no longer have it
You pay interest
It leaves you with a debt
