Sources of finance

Which of the following is not internal sources of finance

• personal savings

• business angels

• retained profits

• sale of assets

Which of following is a short term source of finance

• sales of assets

• overdraft

• trade credit

• debenture

Which of the following is a drawback to a business that issues debentures

• Investors do not have any voting rights

• Ownership is diluted

• The value of liabilities increases

• Dilution of control

The contract used to raise finance by selling the freehold of an asset and then renting it back immediately on a long-term basis is known as

• fixed assets

• sale and lease back

• trade credit

• working capital

There must be sufficient finance to pay for the daily running of the business. This money is known as

• Accumulated retained profits

• Buffer stock

• Work in progress

• Revenue expenditure

Capital expenditure can be used to purchase

• Building

• Vehicle

• Materials

• equipment

Which of the following is not loan capital

• Mortgage

• business development loan

• bank notes

• debentures

Microfinance providers

• are a type of not-for-profit social enterprise

• charge high rates of interest to entrepreneurs who cannot use commercial banks

• empower entrepreneurs of small businesses

• grant financial support to female entrepreneurs only

Which of the following does not belong to disadvantages of crowdfunding?

• Businesses need to have differentiated ideas to attract investors

• Businesses need to meet requirements of platforms

• Businesses need to pay fees to platforms

• Businesses will lose some control