external sources of finance: long-term

Question 1

what can external sources of finance be used to obtain?

Answer 1

expensive non-current assets

Question 2

what can external sources of finance be used to support an enterprise?

Answer 2

growth

Question 3

what is this type of finance usually repaid for how long?

Answer 3

usually repald over a long period of time.

Question 4

mortgages:
what are mortgages?

Answer 4

long-term sums of money borrowed from a bank

Question 5

mortgages:
what are mortgages usually secured against?

Answer 5

property

Question 6

mortgages:
how are mortgages paid back?

Answer 6

In instalments over a long perlod of time, for example 25 years.

Question 7

mortgages:
what be raised quickly?

Answer 7

large amount of finance

Question 8

mortgages:
what is charged?

Answer 8

interest

Question 9

mortgages:
what can be repossessed if repayments are missed?

Answer 9

property

Question 10

share capital:
what is share capital only available to?

Answer 10

private or public limited enterprises

Question 11

share capital:
how is share capital raised?

Answer 11

by Issuing (or selling) shares In the enterprise

Question 12

share capital:
what can the company decide to existing shareholders, professional investors or to the general public?

Answer 12

can decide to Issue more shares In the enterprise for sale

Question 13

share capital:
what are general public considered as?

Answer 13

the public limited companies

Question 14

share capital:
what are professional investors considered as?

Answer 14

private limited companies

Question 15

share capital:
what can enterprises obtain?

Answer 15

finance from the sale

Question 16

share capital:
what does not need to be paid back?

Answer 16

the shares

Question 17

share capital:
what can be raised?

Answer 17

large amounts of finance

Question 18

share capital:
who needs to be paid a dividend each year?

Answer 18

shareholders

Question 19

share capital:
what do shareholders become?

Answer 19

part of owners of the enterprise

Question 20

taking on new partners:
why can taking on new partners bring in additional finance?

Answer 20

as the partner pays for a stake In the enterprise

Question 21

taking on new partners:
what can be raised quickly?

Answer 21

finance

Question 22

taking on new partners:
what could new partners have to invest into the enterprise?

Answer 22

have more money available from other resources/enterprises

Question 23

taking on new partners:
what is likely to be greater than just one?

Answer 23

The borrowing capacity of more people

Question 24

taking on new partners:
what could new partners not agree on?

Answer 24

all business decisions

Question 25

taking on new partners:
why are decision-making be more slower?

Answer 25

as more people are involved

Question 26

taking on new partners:
what are shared?

Answer 26

profit