Term 2 Topic 2.4 - Setting up/starting a business

Question 1

Provide the term of the following:

Money from the owners of the business

Answer 1

Equity capital

Question 2

Provide the term of the following:

Money borrowed that must be repaid

Answer 2

loans

Question 3

Provide the term of the following:

The money OWED on the loans taken

Answer 3

debt

Question 4

Provide the term of the following:

Money borrowed from the bank to COVER costs in your bank acc

Answer 4

overdraft

Question 5

Provide the term of the following:

Buying on account from a SUPPLIER and paying later

Answer 5

trade credit

Question 6

Provide the term of the following:

Selling your DEBTORS to another business at a discount

Answer 6

factoring

Question 7

Provide the term of the following:

Money from government or NGO’s for a specific use

Answer 7

grants

Question 8

Provide the term of the following:

Paying for the use of an asset on a monthly basis

Answer 8

leasing

Question 9

Provide the term of the following:

Money raised from buying shares in a business

Answer 9

venture capital

Question 10

What are the THREE main stages of:

> > > a business VENTURE

Answer 10

1) Concept: the business plan
2) Planning: the action plan
3) Realisation: making the plans a reality

Question 11

You can start a business venture in 2 ways. Name them

Answer 11

a) indepdendently (doing it all by yourself)
b) collaboratively(doing it with other people)

Question 12

What factors do you need to consider when you are setting up a business venture?

Answer 12

• SIZE of the business
• CULTURE of the business
• RISKS involved in setting up
• influences from the MACRO environment
• market RESEARCH needed
• skilled staff and TRAINING needed

Question 12

Name the 2 ways you can acquire funding to start a business

Answer 12

1) Main sources
2) Other sources

Question 13

What are the MAIN sources of acquiring funding for a new business?

Answer 13

• Equity capital
• Loans
• Debt

Question 14

What are the OTHER sources of acquiring funding for a new business?

Answer 14

$ Trade credit
$ Overdraft
$ Grants
$ Venture capital
$ Leasing
$ Factoring

Question 15

Provide ONE WORD (TERM) for the following:

Money owed on the loans taken out

Answer 15

Debt

Question 16

Provide ONE WORD (TERM) for the following:

Money borrowed from the bank to cover costs in your bank account

Answer 16

Overdraft

Question 17

Provide ONE WORD (TERM) for the following:

Selling your debtors to another business at a discount

Answer 17

factoring

Question 18

Provide ONE WORD (TERM) for the following:

Money borrowed that must be repaid

Answer 18

loans

Question 19

Provide the TERM for the following:

Money from the owners of the business

Answer 19

equity capital

Question 20

Provide ONE WORD (TERM) for the following:

Money raised from selling shares in a business

Answer 20

venture capital

Question 21

Provide the TERM for the following:

Buying on account from a supplier and paying later

Answer 21

trade credit

Question 22

Provide ONE WORD (TERM) for the following:

Money from government or NGO’s for a specific use

Answer 22

grants

Question 23

Provide ONE WORD (TERM) for the following:

Paying for the use of an asset on a monthly basis

Answer 23

leasing

Question 24

Provide ONE WORD (TERM) for the following:

The financial resources that make projects possible

Answer 24

funding

Question 25

List 2 ways in which a business venture can be started

Answer 25

Independently
AND
Collaboratively

Question 26

Name 3 MAIN ways of acquiring funding

Answer 26

Equity capital
AND
loans
AND
DEBT