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Sources of finance

Total questions: 10

Worksheet time: 8mins

Name
Class
Date
1.

Retained profit is a good source of finance for a start-up business

a)

True

b)

False

2.

Private limited companies are able to raise more money through the sale of shares than a public limited company.

a)

True

b)

False

3.

What two sources of finance would you suggest to a business that is having cashflow problems

a)

Overdraft

b)

Business Angels

c)

Trade Credit

d)

Leasing

4.

A business requires a specific piece of machinery for a one-off project which will last six months to a year. What source of finance would you recommend?

a)

Trade credit

b)

Retained profit

c)

Leasing

d)

Crowdfunding

5.

Which of the following do not require interest payments?

a)

Retained profit

b)

Share capital

c)

Crowdfunding

d)

Sale of assets

e)

Loan

6.

What do business angels offer that micro-finance does not?

(a)  

7.

Leasing means that a business will never own the item leased

a)

True

b)

False

8.

Which of the following would not be an appropriate source of finance for a partnership

a)

Retained profit

b)

Share capital

c)

Personal finances

d)

Sale of assets

9.

Overdrafts are a good source of finance to help overcome long-term cashflow short-falls

a)

True

b)

False

10.

Why might entrepreneurs be reluctant to seek funding from business angels?

4 lines