WorksheetsSources of finance
Total questions: 40
Worksheet time: 20mins
This is the cash that is generated by the business when it operates successfully
Retained profits
Share capital
Angel investor
Owner savings
Which of the statements about retained profits is false?
You have unlimited amounts of money available
Shareholders and employees could be frustrated because there is less profit to be 'shared out'
You do not have to pay interest
You are free to use it for any purpose
Which of the following statements about bank loans is not true?
Usually used for large amounts of money that need to be paid back over a longer time-frame
Interest rates make the loan more expensive
Easy to get
Usually cheaper than consistently using a bank overdraft
True or false - crowdfunding is usually only used for new business start-ups/concepts and is therefore inappropriate for existing large, profitable businesses
True
False
What of the following is a source of internal finance?
Selling assets
Trade credit
A bank loan
What is the most likely source of finance for a small firm?
A debenture
Issuing shares
A bank loan
What is the most likely source of finance for buying a new IT system?
Mortgage
Factoring
A bank loan
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
Which of these facts about venture capitalists is NOT true?
Venture capitalists tend to operate in fairly risky markets
Venture capitalists would be paid a share of the profits
Venture capitalists usually provide money only and have no interest in running the business
Venture capitalists usually invest large sums of money
An amount of money that is paid back within an agreed amount of time, with interest
Bank loan
Angel investment
Overdraft
Retained profit
This is the cash that is generated by the business when it operates successfully
Retained profits
Share capital
Angel investor
Owner savings
Which of the statements about retained profits is false?
You have unlimited amounts of money available
Shareholders and employees could be frustrated because there is less profit to be 'shared out'
You do not have to pay interest
You are free to use it for any purpose
Which of the following statements about bank loans is not true?
Usually used for large amounts of money that need to be paid back over a longer time-frame
Interest rates make the loan more expensive
Easy to get
Usually cheaper than consistently using a bank overdraft
True or false - crowdfunding is usually only used for new business start-ups/concepts and is therefore inappropriate for existing large, profitable businesses
True
False
What of the following is a source of internal finance?
Selling assets
Trade credit
A bank loan
What is the most likely source of finance for a small firm?
A debenture
Issuing shares
A bank loan
What is the most likely source of finance for buying a new IT system?
Mortgage
Factoring
A bank loan
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
Which of these facts about venture capitalists is NOT true?
Venture capitalists tend to operate in fairly risky markets
Venture capitalists would be paid a share of the profits
Venture capitalists usually provide money only and have no interest in running the business
Venture capitalists usually invest large sums of money
An amount of money that is paid back within an agreed amount of time, with interest
Bank loan
Angel investment
Overdraft
Retained profit
