Indicate by means of a tick (✓) the appropriate source of finance for the following: Delivery van Purchase of stock Extension to a factory Payment of electricity bill - Leaving Cert Business - Question 3 - 2011

The purchase of stock is best financed through a Short term source. This typically involves using cash or short-term credit lines, as stock is quickly convertible to cash and needs quick funding.

An extension to a factory is a significant investment and is thus financed through a Long term source. This usually involves long-term loans or capital investment from equity, as the benefits from the extension will be realized over many years.

The payment of an electricity bill should be covered by a Short term source. This expense is typically incurred monthly and should be settled using available operational funds.