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WorksheetsSources of Finance Quiz
Total questions: 12
Worksheet time: 8mins
What is a potential advantage of obtaining a loan from family or friends?
It requires a lengthy application process.
It may not need to be paid back.
It guarantees business success.
It always comes with high interest rates.
Which of the following is a disadvantage of applying for a grant?
It requires giving up equity in the business.
It needs to be paid back with interest.
It is time-consuming to apply and complete paperwork.
It is only available to public companies.
What is a disadvantage of crowd funding?
It requires a large initial investment.
A public request risks the project being copied by competitors.
It guarantees reaching the targeted amount.
It is a slow way to raise finance.
What is a potential disadvantage of obtaining a loan from family or friends?
It always comes with high interest rates.
Arguments may occur
It guarantees business success.
It requires a lengthy application process.
What is a disadvantage of venture capital?
It does not require any return on investment.
It is only available to government organizations.
Venture capitalists may want a share of the business.
It is only available for non-risky investments.
What is a condition for receiving a grant?
The business needs to meet certain criteria.
The business must be a public limited company.
The business must be located in a rural area.
The business must have no employees.
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
What is an advantage of a business using owner's savings as a source of finance?
Very low rate of interest
It will bring new skills to the business
It doesn't need repaying
Repayment is always spread over a period time
Match the source of finance to the descriptions
money that is invested by the owner
Personal Savings
a facility that will allow you to withdraw more money from your account than is available
Bank Overdraft
It is a fixed amount of money that is given to a business by the bank that has to be repaid over time with interest, usually in monthly instalments
Bank Loan
a sum of money borrowed from the bank that is secured against a property and paid back in instalments, usually over a long period of time
Mortgage
usually awarded by the government or charitable organisations and are given to a business on the condition that they meet certain criteria
Grant
Which source of finance is borrowed from the bank specifically to aid the purchase of property
Grant
Bank Loan
Mortgage
Leasing
