WorksheetsIGCSE Business Studies 5.1.1 - Need for Finance Quiz
Total questions: 15
Worksheet time: 7mins
Which of the following is an example of start-up capital?
Buying new technology to replace outdated systems
Paying rent for office space before the business opens
Replacing delivery vans with newer models
Expanding into a new market
A business may need finance to replace existing assets. Which of the following is an example?
Purchasing raw materials
Buying a new delivery van to replace an old one
Paying employees’ wages
Paying electricity bills
Which of the following best explains why a business might need finance for expansion?
To cover short-term debts
To buy personal assets for the owner
To open new branches or increase production capacity
To pay for daily expenses like electricity
Which type of finance is most likely needed when a business invests in new technology?
Personal finance
Long-term finance
Short-term finance
Grants
Additional working capital is required when:
The business wants to expand into a new market
The business cannot pay day-to-day expenses such as wages and raw materials
The business wants to purchase new buildings
The business wants to increase its fixed assets
Which of the following is a short-term need for finance?
Building a new factory
Buying raw materials
Purchasing new machinery
Expanding into a foreign market
Long-term finance would be most appropriate for:
Paying electricity bills
Replacing office computers every month
Buying land for a new factory
Paying suppliers within 30 days
Which of the following is the best definition of short-term finance?
Finance needed for more than 10 years
Finance needed for less than one year
Finance needed for 5 years or more
Finance used for expansion
A business borrowing money for 15 years to construct a new headquarters is an example of:
Working capital finance
Short-term finance
Long-term finance
Internal finance
Which option is an example of a short-term finance need?
Purchasing new land
Paying for stock before it is sold
Constructing a new office building
Investing in advanced machinery
A café owner needs to buy milk, coffee beans, and sugar to keep the café running. What type of finance is needed?
Long-term finance
Short-term finance
Venture capital
Mortgage loan
A large airline company wants to replace its entire fleet of planes. Which type of finance is most appropriate?
Long-term finance
Short-term finance
Working capital finance
Trade credit
A bakery needs to replace an oven that broke down after 10 years of use. What type of finance is this?
Working capital
Expansion capital
Replacement of assets
Start-up capital
A business that struggles to pay suppliers on time may require:
Expansion finance
Working capital finance
Technology finance
Mortgage finance
A new entrepreneur needs money to purchase premises and equipment before starting operations. This is best described as:
Long-term finance for expansion
Start-up capital
Working capital
Replacement of assets
