Short-term sources of finance (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
Within what timeframe must short-term finance typically be repaid?
Within what timeframe must short-term finance typically be repaid?
Twelve months
What is the maximum repayment period for long-term finance?
What is the maximum repayment period for long-term finance?
Up to 25 years
How does a bank overdraft charge interest?
How does a bank overdraft charge interest?
Only on the amount actually used
What are common payment delay periods for trade credit?
What are common payment delay periods for trade credit?
30 or 60 days
What key benefit does trade credit provide if managed properly?
What key benefit does trade credit provide if managed properly?
Free short-term funding
Can a profitable business still fail?
Can a profitable business still fail?
Yes, if it can't manage cash flow
Which operational expense might businesses need finance to cover?
Which operational expense might businesses need finance to cover?
Employee wages
What flexibility does a bank overdraft offer businesses?
What flexibility does a bank overdraft offer businesses?
Repay and redraw funds as needed
What gap does short-term finance bridge?
What gap does short-term finance bridge?
Between spending money and receiving income
What does a bank overdraft allow businesses to do?
What does a bank overdraft allow businesses to do?
Spend more than they have in their account
Which situation suits short-term finance?
Which situation suits short-term finance?
Purchasing inventory quickly
What can happen to businesses with cash-flow problems?
What can happen to businesses with cash-flow problems?
Can't meet immediate obligations