Sources of finance (OCR GCSE Business): Quizzes
📚Quizzes
Practise the questions
14 questions from this quiz
ShowHide
Practise the questions
14 questions from this quiz
Which source of finance is NOT available to start-up businesses?
Which source of finance is NOT available to start-up businesses?
Retained profit
What is owner's capital?
What is owner's capital?
Using personal savings to finance business
Why might a business not receive full market value when using sale of assets?
Why might a business not receive full market value when using sale of assets?
Assets have likely depreciated
Why do banks charge a higher interest rate on overdrafts?
Why do banks charge a higher interest rate on overdrafts?
Repayments aren't agreed upon, so riskier
What is trade credit?
What is trade credit?
Suppliers let business pay later
How can trade credit help a business meet a demand spike?
How can trade credit help a business meet a demand spike?
Immediate replenishment in resources
What advantage does taking on a new partner bring?
What advantage does taking on a new partner bring?
Partner may bring new skills
What advantage does a fixed interest bank loan offer?
What advantage does a fixed interest bank loan offer?
Easier to plan for repayments
What might a business lose if they don't make bank loan repayments?
What might a business lose if they don't make bank loan repayments?
Assets
What is a key feature of share issue finance?
What is a key feature of share issue finance?
No repayments have to be made
What is a disadvantage of issuing shares?
What is a disadvantage of issuing shares?
Lose some decision-making power
How can crowdfunding benefit a business beyond raising finance?
How can crowdfunding benefit a business beyond raising finance?
Reach wider audience, good promotion
Which source is classified as short-term finance only (up to 1 year)?
Which source is classified as short-term finance only (up to 1 year)?
Trade credit
What do owner's capital, retained profit & sale of assets all have in common?
What do owner's capital, retained profit & sale of assets all have in common?
No interest must be paid