WorksheetsSources of Finance
Total questions: 20
Worksheet time: 14mins
The issue of shares for the first time on the stock exchange is a
Dividend
Equity withdrawal
Rights issue
Flotation
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
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
Which of the following is a benefit to a private limited company of using retained profit to finance its growth?
The business will not be required to pay dividends to its shareholders
The business will pay less tax on its profits
The amount will not need to be paid back
The amount available will always match fully the company’s requirements
Which of the following is classed as a short-term source of finance?
Trade Credit
Venture Capital
Personal Savings
Retained Profit
Finance needed to create and open your business = ???
Fixed costs
Working capital
Go finance
Start up finance
Money needed to function from day to day = ???
Gross profit
Working capital
Dividends
Working growth
Example of internal finance = ???
Personal savings
Bank loan
Credit card
Venture capital
Example of internal finance = ???
Bank overdraft
Sale of assets
Bank loan
Leasing
Example of external finance = ???
Personal savings
Retained profit
Trade credit
Sale of assets
A supplier lets you buy now and pay later = ???
Trade credit
Sales revenue
Inventory
Dividend
A term used to describe renting assets = ???
Leasing
Trade debtor
Current asset
Working capital
Purchase of fixed assets such as vehicles and equipment = ???
Capital expenditure
Working capital
Revenue expenditure
Running costs
Total costs = ???
Fixed costs + variable costs
Fixed costs / variable costs x 100
Fixed costs - variable costs
Fixed costs x variable costs
Total sales revenue = ???
Price per unit / number of units sold x 100
Price per unit x number of units sold
Price per unit + number of units sold
Price per unit - number of units sold
When your business has a lot of unused assets and decides to sell them to raise funds its called:
Overdrafts
Sale of assets
Leasing
Debt factoring
Overdrafts only allow you to withdraw the money from your account, it doesn’t allow you to withdraw more.
TRUE
FALSE
If someone takes over the debts of the company in exchange for some revenue
Debt Factoring
Business Angels
Leasing
Sponsorship
Debt factoring
Selling Assets
Leasing
Loan Capital
