WorksheetsSourcing Finance 5.2
Total questions: 15
Worksheet time: 8mins
What does internal source of finance mean?
A source from within the business
A source from outside the business
What does external source of finance mean?
A source from within the business
A source from outside the business
Which is an example of an internal source of finance?
Owner's Capital
Venture Capitalist
Overdraft
Trade credit
Which is an example of an external source of finance?
Owners' Funds
Sale of assets
Retained profits
Bank loan
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
Raising funds from a wide variety of small investors by publicising an idea on the internet is called:
Share capital
Venture capital
Crowdfunding
Trade credit
Which of the following is an advantage to a start-up business of using an overdraft?
Guaranteed funds from the bank for every start-up
Interest rates will always stay the same increasing business certainty
It provides flexibility to a business when it is short of cash
It will never be recalled at very short notice
A successful sole trader wants to raise funds to open a second restaurant and is eager to retain full control of the business. Which of the following sources of finance would be the most appropriate to fund this expansion?
Gain a partner
Arrange an overdraft facility
Obtain a bank loan
Issue new shares
To which of the following businesses might a supplier be reluctant to issue trade credit?
A new business start-up
A successful franchise
An established and thriving partnership
A highly profitable and reputable private limited company
An established seasonal partnership is experiencing cash flow problems during the winter months. Which of the following would be a suitable source of finance to overcome this problem?
Share capital
Overdraft
Bank loan
Debenture
A business pays annual interest of $412.50 on a bank loan of $5 500. Which one of the following is the annual interest the business pays as a percentage of the amount borrowed?
0.075 %
0.75 %
7.5 %
75 %
What is another name for the finance function?
Procurement department
Logistics department
Marketing department
Finance department
Revenue is...
The money received from selling goods
Costs
Profit
Loss
Costs are...
The way you employ staff
Things you have to pay for in relation to making/selling the product
Stock checking
Consulting with other shareholders
What is expenditure?
Incomings
Money made from sales
Wastage
Money spent by the business
