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WorksheetsSources of Finance Quiz
Total questions: 10
Worksheet time: 5mins
What is retained profit?
Profit distributed to shareholders
Profit kept in the business after costs are paid
Money borrowed from a bank
Funds raised by selling shares
Which of the following is an internal source of finance?
Loan
Sale of assets
Overdraft
Trade credit
What is a disadvantage of owner's capital?
Requires interest payments
Risk of losing personal funds
Reduces control of the business
Limited to short-term use only
Which source of finance involves paying for equipment over time but not owning it until fully paid?
Leasing
Hire purchase
Trade credit
Overdraft
What is a key advantage of crowdfunding?
Guaranteed funding
Raises awareness and funds simultaneously
Provides a large amount of money quickly
No fees involved
What type of business can issue shares to raise finance?
Sole traders
Partnerships
Limited companies
Public sector organisations
Which of the following is most suitable for a business needing immediate cash for short-term expenses?
Venture capital
Overdraft
Grant
Share capital
Which external source of finance does not require repayment?
Loan
Trade credit
Grant
Hire purchase
What is a disadvantage of selling assets to raise finance?
It increases long-term liabilities
It reduces the business’s future capacity
It requires paying interest on the funds raised
It leads to loss of ownership control
Which of the following is a long-term source of finance?
Trade credit
Overdraft
Venture capital
Retained profit
