WorksheetsSources of Finance
Total questions: 27
Worksheet time: 14mins
'Donations' as a source of finance refers to:
Money given voluntarily without expectation of return
Money borrowed from a bank
Income from selling goods
Funds received from government grants
'Small loan' as a source of finance refers to:
A relatively low amount of money borrowed, usually for short-term needs.
A large sum of money borrowed for business expansion.
A grant that does not need to be repaid.
An investment made by shareholders in a company.
'Bank loan' means a business borrows money from a bank as a source of finance.
A business borrows money from a bank as a source of finance.
A business receives a government grant as a source of finance.
A business sells shares to raise money as a source of finance.
A business uses its own profits as a source of finance.
'Crowdsourcing / funding' means raising finance by:
Collecting small amounts of money from a large number of people, typically via the internet.
Borrowing money from a single bank.
Receiving funds only from government grants.
Using only personal savings.
'Angel Investors' refers to which of the following as a source of finance?
Individuals who provide capital to startups in exchange for ownership equity or convertible debt
Banks that offer loans to businesses at low interest rates
Government agencies that provide grants to small businesses
Venture capital firms that invest large sums in established companies
'Grants' as a source of finance refers to:
Funds given by an organization or government that do not need to be repaid.
Loans that must be repaid with interest.
Money raised by selling shares of a company.
Personal savings used to finance a business.
What are donations as a source of finance?
Loans from banks
Voluntary contributions from individuals or organisations often without any return expectation
Government grants
Sale of company shares
Donations are often used by which of the following?
For-profit businesses
Non-profits, charities, or community based initiatives
Government agencies
Private investors
Fill in the blank: Donations can be solicited online, in person or through _______.
events
television shows
magazines
billboards
Which of the following is an advantage of donations as a source of finance?
No repayment or equity-sharing obligations
Guaranteed and consistent funding
Requires high interest payments
Increases company debt
What is a bank loan as a source of finance?
Borrowing a set amount from a bank, repayable over an agreed period with interest
Receiving money as a gift from a bank
Earning interest from a bank deposit
Investing in bank shares
Which of the following is a feature of a bank loan?
Requires a strong credit history and potentially collateral (property) or guarantor
No need for credit history
No interest rates apply
Only short-term repayment terms
Which of the following is a disadvantage of a bank loan?
Interest payments can be costly
Repayment schedule is unpredictable
No risk to assets
No need for a guarantor
Which of the following is a feature of small loans?
Easier application process compared to larger loans
Lower interest rates than standard loans
Only available to large companies
Requires no approval process
Which of the following is an advantage of small loans?
Accessible for start-ups or individuals with limited capital needs
Limited loan amounts may not cover larger needs
Interest rates can be higher
Only available for large businesses
What is a grant as a source of finance?
Repayable funding from banks
Non-repayable funding provided by governments, charities, or other organisations
Loan with interest
Investment from private individuals
Which of the following is a feature of grants as a source of finance?
Always available to everyone
Often targeted toward specific industries, projects, or demographics
Requires repayment with interest
No application process required
Fill in the blank: Grants are ________ funding provided by governments, charities, or other organisations.
non-repayable
taxable
interest-bearing
conditional
Which of the following is a disadvantage of grants?
Encourages innovation and growth
No repayment required
Difficult to obtain due to strict criteria and competition
Available for any use
What is crowdsourcing/funding as a source of finance?
Raising small amounts of money from a large group of people, typically via online platforms like Kickstarter or GoFundMe.
Borrowing money from a bank.
Selling company shares to the public.
Taking a government grant.
Which of the following is a feature of crowdsourcing/funding?
Contributors may donate, lend or invest for equity or rewards.
Only banks can contribute.
It does not require any marketing.
It is only available offline.
Which of the following is an advantage of crowdsourcing/funding?
Builds community support and engagement
Requires significant effort in promotion
No guarantees of reaching funding goal
High immediate repayment obligations
Which of the following is a disadvantage of crowdsourcing/funding?
No immediate repayment obligations
Builds community support and engagement
Requires significant effort in promotion
Easy to reach funding goal
Who are Angel Investors?
Wealthy individuals who provide capital to startups or small businesses in exchange for equity or convertible debt.
Banks that provide loans to businesses.
Government agencies that offer grants.
Customers who prepay for products.
Which of the following is a feature of angel investors?
Invest at early stages of a business
Only invest in large corporations
Do not offer mentorship
Require government approval
Which of the following is an advantage of having angel investors?
A) Access to substantial funds and valuable expertise
B) Loss of equity and control
C) High interest rates
D) No mentorship offered
Which of the following is a disadvantage of having angel investors?
Flexibility in structuring investment terms
Loss of equity and some control over the business
Access to valuable expertise
No expectations for returns
