1) Can raise money from the public at relatively low cost a) An advantage of Crowdfunding is... b) A positive about a Loan may be... c) A downside of Selling Assets to raise finance may be... d) A negative about Loans are... 2) The money doesn't have to be paid back and no interest is due a) A good point on Selling Assets to raise finance may be... b) A positive to Trade Credit is... c) A negative about Loans are... d) An advantage of Owners' Capital is... 3) The owner does not have enough savings a) An advantage to sourcing finance via a New Partner is... b) A negative point about an Overdraft may be... c) An advantage of Crowdfunding is... d) A drawback to Owners' Capital may be... 4) Goods can be taken immediately and used in the production process, meaning those goods can be used to make cash before you have to pay for them a) A positive to Trade Credit is... b) A downside to Trade Credit is... c) A positive point about Overdrafts is... d) An advantage of Crowdfunding is... 5) As goods are not paid for straightaway, it can help for businesses struggling with cash flow a) A positive to Trade Credit could be... b) A positive to Trade Credit is... c) A positive about a Loan may be... d) A downside to taking on a New Partner is... 6) Interest will be due if not paid back by the agreed date; usually 30, 60 or 90 days a) A negative about a Share Issue could be... b) A downside to Trade Credit is... c) A negative point about an Overdraft may be... d) A positive point about Overdrafts is... 7) They may come with a new set of skills and ideas as well as finance a) An advantage to sourcing finance via a New Partner is... b) An advantage of Owners' Capital is... c) A good point on Selling Assets to raise finance may be... d) A downside to taking on a New Partner is... 8) The original business owner now needs to share control and profits with the new partner a) A drawback to Owners' Capital may be... b) A downside to taking on a New Partner is... c) A positive to Trade Credit is... d) A positive about Retained Profit is... 9) It can be incredibly useful when there are cash flow problems a) A positive about a Share Issue is... b) A positive to Trade Credit could be... c) A good point on Selling Assets to raise finance may be... d) A positive point about Overdrafts is... 10) Banks usually charge extremely high interest to access it and this can prove too much for small businesses a) An advantage to sourcing finance via a New Partner is... b) A positive about a Loan may be... c) A negative about a Share Issue is... d) A negative point about an Overdraft may be... 11) A good way to offload unwanted equipment a) A good point on Selling Assets to raise finance may be... b) An advantage to sourcing finance via a New Partner is... c) A drawback to Owners' Capital may be... d) A negative about Retained Profit may be... 12) The business may not want to sell the goods and may actually harm the business; it may also take time to sell / find a buyer a) A downside of Selling Assets to raise finance may be... b) A positive about a Share Issue is... c) A positive to Trade Credit is... d) A negative about Retained Profit is... 13) No interest has to be paid back as it's money the business has earned a) A positive about Retained Profit is... b) An advantage to sourcing finance via a New Partner is... c) A positive point about Overdrafts is... d) An advantage of Owners' Capital is... 14) It depends of whether the business has made any profit to save in the first place a) A negative about Retained Profit is... b) A negative about a Share Issue could be... c) A downside of Selling Assets to raise finance may be... d) A negative about Loans are... 15) All shareholders must agree to withhold their dividend; they may not want to a) A positive about Retained Profit is... b) A drawback to Owners' Capital may be... c) A negative about Retained Profit may be... d) A downside of Selling Assets to raise finance may be... 16) Payments can be spread out over years to avoid cash flow issues a) A good point on Selling Assets to raise finance may be... b) A positive about Retained Profit is... c) A drawback to Owners' Capital may be... d) A positive about a Loan may be... 17) The lender (normally a bank) will expect interest back and the business may need to provide security (or collateral) to the bank a) A negative about Loans are... b) A positive to Trade Credit is... c) A negative about Retained Profit is... d) A positive about a Loan may be... 18) No interest has to be paid back as the business is just selling more shares a) A good point on Selling Assets to raise finance may be... b) A positive about a Loan may be... c) A positive point about Overdrafts is... d) A positive about a Share Issue is... 19) The existing owners' shares become diluted, so now they may have less control and receive less dividends a) A positive about a Share Issue is... b) A negative about a Share Issue could be... c) A good point on Selling Assets to raise finance may be... d) A negative about a Share Issue is... 20) The existing owners needs to be careful not to sell too many shares as they may actually lose control of the business a) A negative point about an Overdraft may be... b) A negative about a Share Issue could be... c) A downside to taking on a New Partner is... d) A negative about a Share Issue is...

Advantages and Disadvantages of Sources of Finances (Quiz)

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