stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
AS - Business Finance Flashcards | StudBud
Explore
/
AS - Business Finance
What is leasing and higher purchase ?
What is share capital ?
AS - Business Finance
15 terms
·
StudBud Administration
·
119 plays
BF
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
What is share capital ?
When you offer a percentage of your business to an investor
When you offer a percentage of your business to a friend.
2
What is leasing and higher purchase ?
Renting machinery.
Buying machinery with cash.
3
What is a disadvantage of sale and lease back ?
You lose the ownership of your asset.
You lose customers.
4
What is trade credit ?
Giving customers credit terms.
Buying petrol for example on credit.
5
What is a disadvantage of factoring ?
Banks only give you 80-85% of the money.
Banks will give you all the money.
6
What is to most likely form of security for a bank loan ?
Property.
Retained profit.
Stock.
7
For a start up business there are limited amounts of finance available ?
False
True
8
Why do small businesses struggle to raise external finance?
They do not have an established trading record.
They can get a loan from a bank easily.
They have and excellent trading record.
9
What is the main disadvantage of operating on an overdraft ?
Profit is used to run business.
Banks can withdraw at anytime.
10
What is the sale of assests ?
The sale of machinery.
The sale of stock to buyers.
11
What is factoring?
When a business sells assets.
Cashing in an invoice with the bank.
12
Why is it important for businesses to keep retained profit ?
Provides finance for shareholders to take.
Provides liquidity and a buffer.
13
Which of the following are examples are venture capitalists ?
Peter Jones
Richard Branson
Lord Alan Sugar
14
What is sale and lease back ?
Sale of a product and refunding the money.
Sale of an asset and renting it back.
15
Retained profit is
an internal source of finance
an external source of finance.
