Statistics for Business - Sources of Finance

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Hint	Answer	% Correct
An amount of money which is given to the business to buy something. The money has to be paid back in full, with interest	Loan	87%
A deficit in a bank account caused by drawing more money than the account holds	Overdraft	68%
A legal agreement in which a person borrows money to buy property and pays back the money over a period of years with interest	Mortgage	65%
Profit kept in the business after owners have taken their share of the profits	Retained profit	24%
Where companies are allowed to purchase raw materials but pay for them at a later date	Trade credit	12%
Selling items of value that the business no longer needs	Selling assets	11%
When a business uses equipment but doesn't own it until the final payment has been made	Hire Purchase	10%
Support provided by a government to help a business start up	Grants	7%
Long term loans of up to 25 years, normally provided to large companies	Debentures	5%
This source of finance is only available to limited companies	Selling shares	5%
When owners of a business use their personal gains to invest into the business	Owner's savings	2%
When debt agencies buy the debt of the debtors and pay a percentage of the original debt immediately to the company	Factoring debt	1%
The sale of inventories to reduce inventory levels	Running down stock	1%