35580585
Description
Quiz by Michelle Parker, updated more than 1 year ago
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Created by Michelle Parker
almost 3 years ago
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Question 1
Question
Short term finance is money borrowed for one year or less
Answer
- True
- False
Question 2
Question
Long term finance is money borrowed for more than two years?
Answer
- True
- False
Question 3
Question
Funds are most needed when first setting up a business. This is because a lot of resources are needed before trading can begin. Some of these resources are 'one-off' items. For example, a new restaurant would need to buy cookers, refrigerators, utensils, furniture, glassware and other equipment including knives, forks and plates. Other start-up costs might include research, converting premises, legal fees, website design and marketing,
Answer
- True
- False
Question 4
Question
Bank Overdraft - allows a business to borrow an unlimited amount of money over an unlimited period
Answer
- True
- False
Question 5
Question
A disadvantage of using credit cards to borrow money to support a business is that interest rates can be very high is the borrowed amount is not repaid within the given period - usually 56 days?
Answer
- True
- False
Question 6
Question
Share capital is an external, long term type of finance, which avoids the need to pay interest charges?
Answer
- True
- False
Question 7
Question
Internal sources of finance include: RETAINED PROFIT, SALE OF ASSETS AND PERSONAL SAVINGS
Answer
- True
- False
Question 8
Question
A MORTGAGE is a long term loan secured against a business?
Answer
- True
- False
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