Sources of finance

5.2

What the syllabus asks of you

Business ownership and sources of finance: the relationship between the form of business ownership and availability of sources of finance
Internal and external sources of finance: internal sources of finance: owners investment, retained earnings, sale of unwanted assets, sale and leaseback of non-current assets, working capital
Internal and external sources of finance: external sources of finance: share capital, debentures, new partners, venture capital, bank overdrafts, leasing, hire purchase, bank loans, mortgages, debt factoring, trade credit, micro-finance, crowd funding and government grants
Factors affecting the sources of finance: the factors influencing the choice of sources of finance in a given situation: cost, flexibility, need to retain control, the use to which it is put, level of existing debt
Selecting the source of finance: the appropriateness of each possible source in a given situation

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All 21 questions on Sources of finance, untimed — answer on paper, then mark yourself against the mark scheme.

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21 questions

These are structured questions, answered in working rather than by picking an option, so they are not listed here one by one. The drill above puts each in front of you with its mark scheme to check against.