Sources Of Finance MCQ Test: Quiz!

8 Questions | Total Attempts: 1812

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Sources Of Finance MCQ Test: Quiz!

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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