Sources of finance

Question 1

What are the sources of finance.

Answer 1

• Bank loan
• Owners own savings
• Government grant
• Sale of an asset (unwanted building)
• mortgage
• Sell shares (if able to)
• Loan from family member
• Bank overdraft
• hire and lease
• credit from suppliers
• Venture capitalist

Question 2

Identify short term sources of finance.

Answer 2

• Bank overdraft
• Government grant
• Retained profits
• Trader credit
• Sale of assets
• Debt factoring

Question 3

Long term sources of finance…

Answer 3

• Owners savings
• Bank loan
• Share issue
• venture capital
• Leasing / hiring
• Debenture

Question 4

what is the roles of the finance department?

Answer 4

• Production of organisations annual accounts
• Analysis of accounting information
• Preparation and monitoring of internal financial information
• Payment of wages and salaries
• Maintenance of financial records
• Payment of accounts and credit control.

Question 5

What are the two categories of break even analysis?

Answer 5

Fixed costs - this is all the costs that stay the same no matter the circumstances

Variable costs - these are things that change, this is something like raw materials so the more products you sell the more raw materials youll need to buy.

Question 6

What 3 figures are on a break even analysis chart

Answer 6

• sales
• fixed costs
• Total costs - which is fixed costs + variable costs