1. Financing the business
Test your knowledge

2. Famous Face One: Question AD
Question B
Question A
Question C

3. Famous Face One: Question A
A share of the profits of a company received by people who own shares

4. Famous Face One: Answer A
Dividend

5. Famous Face One: Question BD
Question B
Question C

6. Famous Face One: Question B
A long term loan to the business

7. Famous Face One: Answer B
Debenture

8. Famous Face One: Question CD
Question C

9. Famous Face One: Question C
The value of a business which belongs to the business owners (Clue: In a company, this would be the value of their shares)

10. Famous Face One: Answer C
Equity (or equity capital)

11. Famous Face One: Question D

12. Famous Face One: Question D
A business which collects the debts of other businesses, for which it charges a fee

13. Famous Face One: Answer D
Factor
Do you know the identity of Famous Face One?

14. Famous Face One is …
Nelson Mandela!

15. Famous Face Two: Question AB
Question C
Question D

16. Famous Face Two: Question A
Finance which is obtained from within the business, or from outside the business

17. Famous Face Two: Answer A
Sources of capital
Inside the business = internal source of capital
Outside the business = external source of capital

18. Famous Face Two: Question BD

19. Famous Face Two: Question B
Legally, renting equipment before buying it (i.e. a type of loan)

20. Famous Face Two: Answer B
Hire purchase

21. Famous Face Two: Question CD

22. Famous Face Two: Question C
Shares in a limited company where the amount of dividend paid depends upon the amount of profit made

23. Famous Face Two: Answer C
Ordinary shares

24. Famous Face Two: Question D

25. Famous Face Two: Question D
Equipment or premises are often ‘rented’ in this manner

26. Famous Face Two: Answer D
Leasing
Do you know the identity of Famous Face Two?

27. Famous Face Two is …
Sally Gunnell!

28. Famous Face Three: Question AD
Question B

29. Famous Face Three: Question A
Shares in a limited company where the amount of dividend paid is fixed i.e. the dividend does not change each year

30. Famous Face Three: Answer A
Preference shares

31. Famous Face Three: Question BD
Question B

32. Famous Face Three: Question B
Borrowing a sum of money which then has to be repaid, with interest, over a period of time

33. Famous Face Three: Answer B
Loan

34. Famous Face Three: Question CD

35. Famous Face Three: Question C
Profit which is kept back by a business and used to pay for investment in the business

36. Famous Face Three: Answer C
Retained profit (or undistributed profit)

37. Famous Face Three: Question D

38. Famous Face Three: Question D
A loan where property is used as security

39. Famous Face Three: Answer D
Mortgage
Do you know the identity of Famous Face Three?

40. Famous Face Three is …
Stephen Hawkins!

41. Famous Face Four: Question AD
Question C
Question B

42. Famous Face Four: Question A
Money which is used by someone to buy a share of what is hoped to be a growing business

43. Famous Face Four: Answer A
Venture capital

44. Famous Face Four: Question BD
Question C
Question B

45. Famous Face Four: Question B
Borrowing money from the bank i.e. when a business spends more money that it actually has in its current account

46. Famous Face Four: Answer B
Overdraft

47. Famous Face Four: Question CD
Question C

48. Famous Face Four: Question C
The ratio of long term borrowings of a company to its share capital

49. Famous Face Four: Answer C
Gearing ratio

50. Famous Face Four: Question D

51. Famous Face Four: Question D
The ratio of current assets of a company to its current liabilities

52. Famous Face Four: Answer D
Current ratio
Do you know the identity of Famous Face Four?

53. Famous Face Four is … J K Rowling!
(Author of the ‘Harry Potter’ books)

54. You Have Now Completed the Quiz
Congratulations!
You Have Now Completed the Quiz