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- 1. Multiple Choice
What does internal source of finance mean?
A source from within the business
A source from outside the business
- 2. Multiple Choice
What does external source of finance mean?
A source from within the business
A source from outside the business
- 3. Multiple Choice
Which is an example of an internal source of finance?
Owner's Capital
Venture Capitalist
Overdraft
Trade credit
- 4. Multiple Choice
Which is an example of an external source of finance?
Owner's capital
Hire Purchase
Retained profits
Sale of assets
- 5. Multiple Choice
Which is an example of an external source of finance?
Owners' Funds
Sale of assets
Retained profits
Bank loan
- 6. Multiple ChoiceWhat is an advantage of a bank loan?There will be little or no interestYou can pay in smaller installmentsThey are quick and easy to arrangeYou don't have to pay it back
- 7. Multiple Choice
What is an advantage of owner's capital?
There will be interest
You can pay in smaller installments
They take a long time to arrange
You don't have to pay it back
- 8. Multiple Choice
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
- 9. Multiple Choice
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
- 10. Multiple Choice
Which of the following are DISADVANTAGES of selling shares as a source of finance? (select as many as appropriate)
It means limited liability for the owners
Dividends need to be paid to shareholders
Large sums of money can be raised
Does not apply to Partnerships or Sole Traders
- 11. Multiple Choice
Which of the following would be the most appropriate source of finance for a new business (which is just launching) that makes mobile phone accessories?
Retained Profit
Sale of Assets
Share Capital
Friends and family
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