Sources of Finance (AQA A-Level Business): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the defining feature of internal sources of finance?
What is the defining feature of internal sources of finance?
Money generated from within the business
Which key advantage does retained profit have over external borrowing?
Which key advantage does retained profit have over external borrowing?
No need to pay interest on this money
What is a major disadvantage of raising finance through sale of assets?
What is a major disadvantage of raising finance through sale of assets?
Asset is gone permanently
Which statement about equity finance is correct?
Which statement about equity finance is correct?
Never has to be paid back
Why might a business choose a loan over equity when raising finance?
Why might a business choose a loan over equity when raising finance?
Loans don't dilute ownership
What percentage do businesses receive immediately through debt factoring?
What percentage do businesses receive immediately through debt factoring?
80% of invoice value
What is a key advantage of a bank overdraft?
What is a key advantage of a bank overdraft?
Only pay interest on amount overdrawn
What is trade credit essentially?
What is trade credit essentially?
An interest-free loan from suppliers
Which type of businesses does venture capital typically target?
Which type of businesses does venture capital typically target?
Small and medium-sized businesses
How long do mortgages for business property typically last?
How long do mortgages for business property typically last?
15-25 years