Raising Finance (Edexcel 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
Which is an example of capital expenditure?
Which is an example of capital expenditure?
Purchasing factory machinery
What defines internal finance?
What defines internal finance?
Money from business or current owners
Which is a typical source of owner's capital?
Which is a typical source of owner's capital?
Personal savings
What is the most important internal finance source for established businesses?
What is the most important internal finance source for established businesses?
Retained profit
What is a key advantage of retained profit?
What is a key advantage of retained profit?
No interest charges apply
What opportunity cost arises from using retained profit?
What opportunity cost arises from using retained profit?
Owners receive lower dividends
What is sale and leaseback?
What is sale and leaseback?
Selling asset then leasing it back
What is an advantage of internal finance?
What is an advantage of internal finance?
Immediate availability
What is a disadvantage of internal finance?
What is a disadvantage of internal finance?
Not tax-deductible
When is owner's capital often the first source of finance used?
When is owner's capital often the first source of finance used?
When starting a business