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Edexcel International GCSE Business | Business Finance – Sources Flashcards | StudBud
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Edexcel International GCSE Business | Business Finance – Sources
Edexcel International GCSE Business | Business Finance – Sources
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1
What is the name given for the amount added on to repayments (the cost of borrowing)
Interest rate
Exchange rate
Credit score
Credit rate
2
Which source of finance involves the bank permitting a business to incur a negative account balance?
Overdraft
Owner's capital
Bank loan
Share issue
3
Which of the following is an advantage of an
overdraft
?
Usually interest free
Assets may not be used
No repayment required
Charges only apply on negative balances
4
Which source of finance involves using an online platform to raise funds (often in return for a reward for backers)?
Crowdgathering
Crowdfundme
Crowdsharing
Crowdfunding
5
Which source of finance involves selling part ownership of a company to investors.
Owner's capital
Share issue
Crowdfunding
New partner
6
What is sometimes used as security for a loan (to be seized if the loan is not repaid)?
Overdraft
An employee
The balance sheet
Collateral
7
Which of the following involves paying suppliers at a later date?
Trade payables
Trade receiveables
Leasing
Peer-to-peer lending
8
Stock market flotation involves:
A sole trader becoming a partnership
A public limited company becoming a public corporation
A private limited company becoming a public limited company
A partnership becoming a private limited company
9
A source of finance in which an investor buys equity in a high-risk business (new or expanding).
Crowdfunding
Bank loan
Venture capital
Peer-to-peer lending
10
Which source of finance would be most suitable for a business with unused buildings?
Loan
Sale of assets
New partner
Crowdfunding
11
Which of the following is a disadvantage of
share capital
as a source of finance?
Loss of equity/ownership
Loss of assets
High interest rate
Monthly repayments required