External 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
Why is external finance difficult for start-ups to secure?
Why is external finance difficult for start-ups to secure?
They lack a proven trading record
What is a key advantage of borrowing from family and friends?
What is a key advantage of borrowing from family and friends?
Interest charges may be lower or zero
What protection does the FSCS provide for peer-to-peer lending participants?
What protection does the FSCS provide for peer-to-peer lending participants?
No protection at all
How much do business angels typically invest in businesses?
How much do business angels typically invest in businesses?
Between £10,000 and £100,000 or more
What is the minimum investment typically allowed in crowd funding ventures?
What is the minimum investment typically allowed in crowd funding ventures?
As little as £10
Why are mortgages usually cheaper than unsecured loans?
Why are mortgages usually cheaper than unsecured loans?
Collateral reduces the risk for lenders
What is the status of a debenture holder in a company?
What is the status of a debenture holder in a company?
A creditor, not an owner
Why is share capital called 'permanent capital'?
Why is share capital called 'permanent capital'?
It is not normally redeemed or repaid
What voting rights do ordinary shareholders have?
What voting rights do ordinary shareholders have?
All ordinary shareholders have voting rights
What is the typical payment period for trade credit?
What is the typical payment period for trade credit?
Usually within 30 to 90 days