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Sources of finance quiz 2 RSFC Flashcards | StudBud
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Sources of finance quiz 2 RSFC
Sources of finance quiz 2 RSFC
32 terms
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#Business #ALevel
Flashcards
32 cards
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Questions
32
Answers
1
What is collateral:
Something you must sell for a loan.
Something you must not have to be eligible for a loan.
Something you trade permanently for money.
Something you deposit as security for a loan.
2
Why are overdrafts good for short term borrowing?
They are free for the 1st 30 days
You only pay interest when you are overdrawn
The interest rate is really low
You can pay back the same each month
3
Get funding from a very large number of investors (through internet)
grants
peer-to-peer lending
venture capital
crowdfunding
4
In a mortgage, the purchased home becomes collateral for the loan.
False
True
5
Credit card companies check if you have investments to use as collateral.
False
True
6
Which of these is not a type of "share" issued by a firm?
Preference
Ordinary
Debenture
Deferred
7
What is the downside to a government grant?
There may be tight restrictions such as providing apprenticeships
The grant needs to be paid back within a given time frame
The government will request part ownership of the business
There will be interest to pay which increases expenses
8
Business Angels are a good source of
Long-Term
Finance
False
True
9
What does Peer to Peer lending offer?
Financing through the government that you pay back
Credit financing borrow/lend money w/o financial institution
None of the above
Debit financing borrow/lend money w/o financial institution
10
Which type of collateral is not desirable?
Business equipment
Inventory and accounts
Raw land to hold without development plans
1st deed of trust on improved property
11
Funding from many individuals online
trade credit
leasing
business angel
crowdfunding
12
Which of these is most likely to be a secured loan?
Using Venture Capital
Selling Ordinary Shares
Overdraft
Mortgage
13
The following business is most likely to use a venture capitalist...
Small to medium sized businesses.
Multinational companies.
14
What is crowd funding?
Fundraising
Similar to dragons on Dragons den
Another name for an overdraft
small amounts givenn by the public for a product or share
15
term for peoplewho own operate and take the risk of a business venture
entrepreneur
employee
investor
venture capitalist
16
Most likely advantage of using a Venture Capitalist
Do not have to pay tax
Do not interfere with business
Increase finance for a small business
No need to produce a business plan
17
what is an advantage of a grant?
He's a man called Grant ;- )
No requirements need to be met
Money is given to the business for free
Low interest rates
18
Crowd funding supporters usually receive .... in return of their investment
nothing
a variable interest rate (usually around 5%)
a share of the company
a non-financial consideration (e.g. a prototype)
19
Collateral is
damaging to your credit
A kind of loan
An asset or piece of property
paid every other month
20
What was money raised for a business venture called?
Revenue
Credit
Capital
Casual
21
Why would you use a venture capitalist for funding?
To give away a share of your business
To pass over control on your business
Experience
Knowledge
22
What is Crowd Funding?
Raising Money as a Crowd by Doing an Activity
People Contribute Small Amount for Something in Return
23
What is peer to peer lending?
I have no clue
When a bank loans another bank money
When one person loans another person a sum of money.
When a bank loans a person money.
24
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
25
What is a business angel?
An angel that protects the business finance from all evil
Individual investor puts on money in variety of businesses
Marketing strategy to ensure clients their finance is legal
26
Which one is not an advantage of leasing?
Hire companies offer the most up to date equipment
The owner of the asset will be responsible for servicing it
No big capital outlay at the start
Buying assets is cheaper in the long run
27
What will the teacher not take as collateral for borrowing a pencil?
Shoes
School ID
Keys
Phone
28
Business should not depend on
subsidies
because
I Don't Know
They might be withdrawn due to government policy change
They become inefficient
They may increase debt due to poor productivity
29
Where does Peer to Peer lending happen?
Online
On Brighton Pier
Anywhere between friends
In a bank
30
Do peer-to-peer lending people know each other?
No
Yes
31
A venture capitalist is
A manager of a business's investment, aligning with goals
The net worth of a company
The co-founder of a successful startup
An investor in a business providing capital for startup
32
Crowd funding is....
a business run jointly by and for the benefit of it members
ensuring workers get a fair deal for the products made
a way for people to raise awareness and money for a project
a web based marketing technique
