Sources of Finance Quiz

Which of the following is an example of a source of finance?

• Marketing strategy

• Product design

• Retained profit

• Customer feedback

Which of the following is NOT listed as a source of finance?

• Share issue

• Debt factoring

• Employee training

• Venture capital

What does the term "Cash flow" refer to?

• The flow of money in and out of the business

• The total profit of a business

• The amount of money owed to creditors

• The assets owned by a business

Who are "Creditors"?

• People who owe you money

• People you owe money to

• People who manage your assets

• People who invest in your business

Who are "Debtors"?

• People who owe you money

• People you owe money to

• People who manage your assets

• People who invest in your business

What does "Capital" refer to in a business context?

• The total revenue of a business

• Any assets that can be sold to free up money

• The amount of money owed to creditors

• The flow of money in and out of the business

What does owner's personal finance include?

• Personal savings and money borrowed from family and friends

• Loans from banks and financial institutions

• Government grants and subsidies

• Investments from venture capitalists

What is one advantage of using owner's personal finance for a business?

• It allows the owner to keep control of the business

• It guarantees high returns on investment

• It eliminates all financial risks

• It provides unlimited funding

What is a risk associated with using owner's personal finance?

• The owner could lose their savings if the business fails

• The owner will have to pay high interest rates

• The owner will lose control of the business

• The owner will face legal issues

What is the primary purpose of a business holding back profits from previous years?

• To pay off existing debts

• To make larger purchases, such as assets or bulk buying

• To distribute dividends to shareholders

• To increase employee salaries