IB Business Management 3.1 Challenge!

Question 1

These two external sources of finance require transferring a % of ownership to the source:

Accepted Answer

venture capital & business angels

Question 2

This external source of finance implies selling shares of the company:

Accepted Answer

share capital

Question 3

You don't have to repay for these two external sources of finance:

Accepted Answer

grants & subsidies

Question 4

This is NOT an external source of finance:

Accepted Answer

auction

Question 5

When we use business funds to pay for day-to-day operational expenses, that is...

Accepted Answer

revenue expenditure

Question 6

This is NOT an external source of finance:

Accepted Answer

garage sales

Question 7

This external source of finance implies renting vehicles, equipment and properties:

Accepted Answer

leasing

Question 8

This internal source of finance is the most easily available but it might not be enough:

Accepted Answer

personal funds

Question 9

This external source of finance implies having someone else to collect money from debtors:

Accepted Answer

debt factoring

Question 10

This internal source of finance implies selling unwanted properties, vehicles or equipment:

Accepted Answer

sale of assets

Question 11

Internal sources of finance are:

Accepted Answer

personal funds, retained profit, sale of assets

Question 12

Repayment of these two external sources of finance includes an interest rate:

Accepted Answer

loan capital & overdraft

Question 13

This internal source of finance comes from the money you keep after paying taxes and dividends:

Accepted Answer

retained profit

Question 14

This external source of finance implies acquiring raw materials by credit:

Accepted Answer

trade credit

Question 15

When we use business funds to acquire long-term items or fixed assets, that is...

Accepted Answer

capital expenditure

Questions 15