National 5 Bus Mgt Sources of Finance

Which source of finance is NOT available to ALL types of business organisations?

• Selling shares
• Selling unwanted assets
• Grants
• Leasing

Which source of finance is ONLY available to an Ltd or PLC company?

• Selling shares
• Bank loan
• Grants
• Retained profits

What is the name for a large amount of money borrowed from a bank to pay for property/premises?

• Overdraft
• Loan
• Mortgage
• Debt

Grants - which statement is false?

• Grants are only given out if criteria has been met
• Grants do not need to be repaid
• Grants only have a low rate of interest applied
• Grants are mainly issued by local and national Government and the EU

What name is given to the monthly amount of money paid back after a bank loan has been taken out?

• Deposit
• Withdrawal
• Instalment
• Standing order

Which source of finance involves getting rid of unwanted items that the company owns?

• Sale of liabilities
• Sale of assets
• Jumble sale
• Sale of equity

Name the person who likes to take on risky investments in return for part ownership of the business?

• Adventurer
• Investor
• Donor
• Venture Capitalist

Which source of finance is only available to organisations in the public sector?

• Grants
• Selling shares
• Taxes
• Hire purchase

What source of finance involves paying a deposit for an asset then making monthly payments, after which you own the asset outright.

• Leasing
• Renting
• Hire purchase
• Savings

What is NOT a benefit of leasing?

• Can get to use asset quickly
• You own it after a certain period of time
• Asset is replaced if it becomes obsolete
• Do not need to pay out a large sum of money up front