Nat 5 BM - Finance

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

• Selling shares
• Bank loan
• Grants
• Retained profits

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

• Selling shares
• Selling unwanted assets
• Grants
• Leasing

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

• Overdraft
• Loan
• Mortgage
• Debt

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

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

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

• Grants
• Selling shares
• Taxes
• Hire purchase

Which source of finance do most sole traders use at the start of the business?

• Own savings
• Retained profits
• Donors
• Debentures

Fill in the blank - a disadvantage of using retained profits as a source of finance is that the money cannot be _____ for something else.

• used
• deposited
• borrowed
• controlled