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WorksheetsSources of Finance Y12
Total questions: 20
Worksheet time: 10mins
What is an advantage of a business using owner's capital 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
What type of finance involves less profit going to the owners?
Retained profit
Sale of assets
Overdraft
Owner's capital
Which of these sources of finance is likely to charge the most interest?
Trade credit
Retained profit
Bank loan
Overdraft
What source of finance is not available to unlimited companies?
Taking on a new partner
Trade Credit
Share Issue
Retained Profit
What does internal source of finance mean?
A source from within a business
A source from outside a business
What is an example of an internal source of finance?
Owner's fund
Leasing
Hire purchase
Trade credit
What is an example of internal source of finance?
Owners' funds
Retained profits
Sales of assets
Bank loan
What is an advantage of Retained profit
satisfaction
No financial cost
Shareholders can get more dividend
You need to pay interest
This type of finance does not need to be repaid.
Bank loan
Mortgage
Overdraft
Government Grant
With leasing,ownership (a) passes to the business customer
What is a disadvantage of using an overdraft?
Higher interest rates
You only pay interest while using it
It can be paid off quickly
You can't use it in the first year of trading
A term used to describe renting assets = ???
Leasing
Trade debtor
Current asset
Working capital
A supplier lets you buy now and pay later = ???
Trade credit
Sales revenue
Inventory
Dividend
What type of business can issue shares?
A co-opoerative
A limited company
A partnership
A sole trader
A downside to issuing shares to new investors is....
The amount is treated as debt
Dividends don't need to be paid
Cash flow worsens
They have some control over your business
Which of these sources of finance is likely to require security in order to be obtained?
Bank Loan
Government grant
Share capital
Sale of assets
Which of the following statements about Leasing is NOT true
You never own the product being leased
You have to pay every month
The company leasing the product will pay for some maintenance
You will end up owning the item after a year or two
What is a disadvantage of inviting a new partner to join a partnership?
They may bring new expertise
They will share the workload
They will get a share of the profits
They wil have new ideas
