Finance

Question 1

Ways of raising finance

Answer 1

Owners capital, retained profit, sale of assets, overdraft, trade credit, new partner, loan, share issue, crowdfunding

Question 2

Owners capital

Answer 2

Owners savings are invested

Question 3

Retained profit

Answer 3

Profit that has been made by the business in previous years that is then reinvested back into the company.

Question 4

Sale of assets

Answer 4

Goods owned by the business are sold to raise money

Question 5

Overdraft

Answer 5

A bank makes available to a business more money that it has in its account

Question 6

Trade credit

Answer 6

A business sells goods after agreeing to pay the supplier at a later date.
. After they get a revenue

Question 7

New partner

Answer 7

The new partner invests savings and capital, whilst also bringing skills

Question 8

Loan

Answer 8

A set amount of money borrowed from a bank for a set period of time with interest

Question 9

Share issue

Answer 9

New shares are sold to raise more capital

Question 10

Crowdfunding

Answer 10

Money is donated or invested by sponsors or people

Question 11

Short term finance

Answer 11

(12 months)
. Owners capital
. sale of assets
. Trade credit

Question 12

Long term finance

Answer 12

(5 years)
. Owners capital
. Share issue
. New partner
. Loan