In which cases is a subsidy offered?

Business would otherwise fail creating high unemployment, High risk of failure in market, To allow competition amongst businesses

Advantage of business angel?

Business angel likely has experience and prior knowledge

What is Equity finance?

Permanent finance raised by companies through sale of shares

What is hire purchase?

An asset sold to a company with fixed repayments over time p

Where did Mrs Stavrinaki get her jacket from?

Abercrombie, Oysho, Massimo Dutti, Tommy Hilfiger

Financial benefit by government to encourage production

What is the difference between a venture capitalist and a business angel?

Angels r wealthy individuals, v.c. r specialist institutions

What is a venture capital?

Risk capital invested in start-up that have profit potential

Bonds by companies to raise debt finance with fixed interest

What is a business angel?

Individual investor puts on money in variety of businesses

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Sources of Finance 3.1

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#grants #mediumsources #longtermsources #microfinance #angels

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Questions 20

Answers

1
In which cases is a subsidy offered?
To help start-up businesses
Business would otherwise fail creating high unemployment
High risk of failure in market
To allow competition amongst businesses
2
Likely amount of microfinance
more than 1000
500-1000
20-100
20 000 and up
3
Who provides subsidies?
Banks
Business Angel
Venture Capitalists
Government
4
Do you have to purchase the asset at the end when leasing?
No
Yes
5
Advantage of business angel?
Share ownership of angel in business
Business owner needs to win trust from angel
Business angel likely has experience and prior knowledge
6
Which business is most likely to receive micro finance?
Small Businesses
Large Plc
Large Lts
Succesful Partnership
7
Which one is long term?
Equity finance
Overdraft
Debt Factor
Debentures
8
What is Equity finance?
Short term source of finance
Non permanent finance raised by bank loans
Finance for start-ups
Permanent finance raised by companies through sale of shares
9
What is hire purchase?
Selling of claims over debtors to a debt factor
A liability of a company with fixed repayments over time p.
Paying rental to obtain and use equipment for time period
An asset sold to a company with fixed repayments over time p
10
Where did Mrs Stavrinaki get her jacket from?
Abercrombie
Oysho
Massimo Dutti
Tommy Hilfiger
11
Do long term loans have variable or fixed interest rates?
Fixed
Variable
Both
12
What are subsidies?
Financial benefit by government to encourage production
Company where >50% controlled by another company
Company where <50% controlled by another company
13
What is the difference between a venture capitalist and a business angel?
V.c work for the government, business angels don't
Business angels work for government, v.c don't
V.c r wealthy individuals, angels r specialist institutions
Angels r wealthy individuals, v.c. r specialist institutions
14
What is a venture capital?
Risk capital invested in start-up that have profit potential
investors who put in their personal savings in a business
15
What are the two main sources of medium-term finance?
Overdraft & Debenture
Leasing & Hire purchase
Debt Factoring & Grants
Trade Credit & sale of shares
16
What do companies provide for a long term loan?
Capital Expenditure
Start-up Capital
Revenue Expenditure
Collateral
17
What is Debenture?
Very small loans by specialist finance businesses
Loans that do not repaid for at least one year
Bonds by companies to raise debt finance with fixed interest
18
What does hire purchase and leasing help with?
Easy to set up
Improve long-term cash flow
Cheap source of finance
Improve short-term cash flow
19
Can a partnership sell shares on the stock market?
Yes
HELL NO
Obviously
No
20
What is a business angel?
Marketing strategy to ensure clients their finance is legal
Individual investor puts on money in variety of businesses
An angel that protects the business finance from all evil

Sources of Finance 3.1 Flashcards | StudBud