Financing growth (Edexcel GCSE Business): Quizzes
📚Quizzes
Practise the questions
12 questions from this quiz
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Practise the questions
12 questions from this quiz
What do businesses need additional funding for?
What do businesses need additional funding for?
To support expansion and growth
Which of these is an internal source of finance?
Which of these is an internal source of finance?
Retained profit
What does selling assets generate for a business?
What does selling assets generate for a business?
Immediate cash
What is the main drawback of selling business assets?
What is the main drawback of selling business assets?
The business loses the asset's benefits
Why is retained profit the most secure financing method?
Why is retained profit the most secure financing method?
It has no external debt or risk
What limits the use of retained profit for business growth?
What limits the use of retained profit for business growth?
Not all firms generate sufficient profit
What are bank loans typically secured against?
What are bank loans typically secured against?
The company's assets
What must businesses pay on loan capital?
What must businesses pay on loan capital?
Regular repayments with interest
What can happen if a business fails to repay its loan?
What can happen if a business fails to repay its loan?
Loss of secured assets
What is the main trade-off when selling shares?
What is the main trade-off when selling shares?
Giving up partial ownership and control
What are shareholders entitled to receive?
What are shareholders entitled to receive?
Voting rights and profit dividends
Which source of finance carries the least risk?
Which source of finance carries the least risk?
Retained profit