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Sources of finance

Quiz by Aine Hardcastle

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10 questions
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  • Q1
    Which of the following is considered a source of external finance for a business?
    sale of assets
    owner's capital
    retained profit
    business angels
    30s
  • Q2
    What method of finance allows a business to purchase equipment while making payments over time?
    overdrafts
    loans
    leasing
    trade credit
    30s
  • Q3
    Which of the following is an example of internal finance?
    crowd funding
    bank loans
    venture capital
    retained profit
    30s
  • Q4
    Which external finance source involves borrowing money that must be paid back with interest?
    trade credit
    loans
    retained profit
    share capital
    30s
  • Q5
    What is a common way for businesses to raise funds from multiple small investors through the internet?
    crowd funding
    loans
    business angels
    leasing
    30s
  • Q6
    Which of the following is considered a source of external finance specifically designed for high-risk start-ups?
    owner's capital
    sale of assets
    retained profit
    venture capital
    30s
  • Q7
    Which method of finance allows a business to temporarily withdraw more money than it has in its account?
    loans
    retained profit
    overdrafts
    leasing
    30s
  • Q8
    Which source of external finance often comes from individuals with experience in the industry who can also provide advice?
    retained profit
    business angels
    family and friends
    grants
    30s
  • Q9
    Which method of finance involves obtaining goods or services and paying for them at a later date?
    loans
    trade credit
    overdrafts
    venture capital
    30s
  • Q10
    Which internal finance option involves using personal wealth accumulated by the business owner?
    owner’s capital
    grants
    business angels
    retained profit
    30s

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