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Business - Sources of Finance
Identify the correct source of finance from the description
Quiz by
ChrisFrench
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Last updated: March 17, 2016
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First submitted
March 17, 2016
Times taken
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Average score
23.1%
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Hint
Answer
Selling items of value that the business no longer needs
Selling assets
A deficit in a bank account caused by drawing more money than the account holds
Overdraft
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
When a business uses equipment but doesn't own it until the final payment has been made
Hire Purchase
Where companies are allowed to purchase raw materials but pay for them at a later date
Trade credit
Profit kept in the business after owners have taken their share of the profits
Retained profit
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
Hint
Answer
This source of finance is only available to limited companies
Selling shares
The sale of inventories to reduce inventory levels
Running down stock
When owners of a business use their personal gains to invest into the business
Owner's savings
Support provided by a government to help a business start up
Grants
Long term loans of up to 25 years, normally provided to large companies
Debentures
When debt agencies buy the debt of the debtors and pay a percentage of the original debt immediately to the company
Factoring debt
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