Sources Of Finance MCQ Test: Quiz!
8 Questions
| Attempts: 9263
.
Questions and Answers
- 1.Government grants are generally offered to businesses in:
- A.
Properous areas
- B.
Economically deprived areas
- C.
Areas with high employment
- D.
Cold areas
- 2.Banks require collateral as security for their loans.
- A.
True
- B.
False
- 3.A business uses Hire purchase because:
- A.
This allows a business to acquire assets to keep by paying for it over a period
- B.
This allows them to use an asset when they want
- C.
They can use it without paying for it
- D.
This allows a business to use assets and by paying for it over a period
- 4.If a bank thinks lending money to a certain business is risky it will:
- A.
Charge a lower interest rate
- B.
Charge a higher interest rate
- C.
Send the business packing
- D.
Think about it
- 5.Short term finance is usually only available to business for periods of
- 6.Share capital is
- A.
money given to a company by shareholders in return for a stake in the business
- B.
Business borrowing capital from a financial institution
- C.
Capital shared amongst owners
- D.
Capital shared with shareholders
- 7.An 'Overdraft' is where a business is permitted to overspend on its bank account up to an agreed limit.
- A.
True
- B.
False
- 8.A 'Debenture' is?
- A.
A long term loan
- B.
A short term loan
- C.
an internal source of finance
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