Quizs From Socrative That I Got Wrong Flashcards
Which of the following is an advantage to a business of using a government grant as a source of finance?
It does not need to be repaid.
Which of the following is a disadvantage to a business of selling unwanted assets to raise business finance?
The asset will no longer be available to use in the business.
Which of the following might a bank request before it decides to issue a loan to a new business start-up that will operate as a sole trader and will trade solely in the UK?
A business plan.
Hire purchase is used when a business:
Wishes to pay for an asset in instalments.
A successful plc is looking to expand into new markets whilst minimising the risk of takeover. Which of the following sources of finance would be the most suitable to fund this expansion?
Retained profit.
Which of the following is classed as a short term source of finance?
Trade credit.
Which of the following is an example of an external source of finance?
New share issue.
