Choosing Appropriate 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 finance source is most appropriate for temporary funding needs or working capital?
Which finance source is most appropriate for temporary funding needs or working capital?
Bank overdrafts
What is the maximum time period for which mortgages can typically extend?
What is the maximum time period for which mortgages can typically extend?
25 years
What happens to the cost of borrowing when a business faces financial difficulties?
What happens to the cost of borrowing when a business faces financial difficulties?
It rises due to greater risk
Which type of expenditure should be funded by long-term sources?
Which type of expenditure should be funded by long-term sources?
Capital expenditure
What are the cost characteristics of share issues?
What are the cost characteristics of share issues?
High admin costs but no interest
What personal risk do unlimited liability business owners face when using mortgages?
What personal risk do unlimited liability business owners face when using mortgages?
Losing their home
What is a rights issue?
What is a rights issue?
Offering existing shareholders new shares
What control do debenture holders have over business decisions?
What control do debenture holders have over business decisions?
No control over decisions
Approximately what proportion of all business finance does retained profit provide?
Approximately what proportion of all business finance does retained profit provide?
Half
Which type of business can legally issue shares or debentures?
Which type of business can legally issue shares or debentures?
Limited companies only