WorksheetsBusiness Financing
Total questions: 10
Worksheet time: 5mins
What occurs when part ownership of the business is sold to an investor in exchange for funding?
Debt financing
Equity financing
Personal savings
What is the owner's contribution to the business called?
Revenue
Profit
Capital
Expense
What is the capital needed to pay for the everyday costs of running the business?
Working capital
Growth capital
Start-up capital
Which type of capital is used to purchase new equipment or machinery?
Working capital
Growth capital
Start-up capital
Which financial product allows a business to take out a mortgage to purchase expensive fixed assets such as land and buildings?
Business line of credit
Business overdraft
Bank guarantees
Mortgages
Which financial product allows a business to have full use of the asset and gets to keep the asset at the end of the contract?
Hire purchase
Leasing
Line of credit
Venture capital
Which financial product allows businesses to save interest costs that would normally be paid on a loan to fund any asset purchase?
Hire purchase
Leasing
Line of credit
Venture capital
What is the main disadvantage of using personal savings to fund a new business?
High interest rates
Risk of losing the invested funds
Requirement for regular interest payments
Involvement of a third party
What is the main disadvantage of borrowing money from family and friends?
High interest rates
Involvement of a third party
Strain on personal relationships
Requirement for regular interest payments
What is the '3Cs test' used for?
To determine the interest rate on a loan
To decide the risk involved in giving a client a loan
To evaluate the profitability of a business
To assess the availability of grants
