Sources Of Finance

Question 1

How long are the terms of sources of finance?

Answer 1

Short Term finance - must be repaid within 1-2 yrs
Medium Term Finance - must be repaid within 3-7
Long Term Finance - must be repaid after 7 yrs

Question 2

What is a Short Term source of finance?

Answer 2

Hire Purchase
Overdraft
Trading Credit

Question 3

What is a Medium Term source of finance?

Answer 3

Mortgage
Lease
Venture Capital

Question 4

What is a Long Term source of finance?

Answer 4

Mortgage
Government Loan
Venture Capital

Question 5

Advantage and Disadvantage of Venture Capital

Answer 5

A High risk venture capita
D Risky

Question 6

Advantage and Disadvantage of Government Loan

Answer 6

A Lower interest
D Restriction on use

Question 7

Advantage and Disadvantage of Mortgage

Answer 7

A Lower interest
D Long term finance

Question 8

What is mortgage?

Answer 8

type of loan used to purchase or maintain a home, plot of land, or other type of real estate.

Question 9

What is hire purchase?

Answer 9

Allows businesses to quickly obtain valuable assets while distributing the cost over a set period.

Question 10

What is overdraft?

Answer 10

occurs when you don’t have enough money in your account to cover a transaction, but the bank pays the transaction anyway.