Why might a growing business need additional finance?

Finance Sources and Business Control

Interactive Video
•
Business
•
9th - 12th Grade
•
Easy

Olivia Brooks
Used 1+ times
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To close down operations
To reduce its workforce
To develop new products and expand
To decrease its market share
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key advantage of using retained profits as a source of finance?
It incurs high interest rates
It is quick to access and incurs no fees
It requires selling company shares
It involves borrowing from banks
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a potential disadvantage of selling business assets for finance?
It provides a cash injection
It may lead to future operational issues
It increases the number of shareholders
It requires paying dividends
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a benefit of using the owner's savings as a source of finance?
It is quick and incurs no interest
It is a slow process
It incurs interest charges
It requires selling assets
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a drawback of using loan capital?
It requires no collateral
It is interest-free
It can be expensive due to interest
It does not affect cash flow
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How does share capital affect business control?
It has no impact on business control
It requires repayment with interest
It dilutes control as new shareholders are added
It increases control for the original owners
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a benefit of raising finance through share capital?
The business must repay the money
It incurs high interest rates
The business does not have to repay the money
It requires selling assets
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