1. Which source of finance? The following statements could be describing which sources of finance?

2. 1. Is paid back in monthly payments for an agreed period of time

3. 2. Is specifically for buying property

4. 3. Is an internal source of finance

5. 4. Involves selling part of the business and sharing future profits

6. 5. Is only suitable for buying stock from suppliers

7. 6. Does not have to be repaid

8. 7. Is suitable for the purchase of equipment

9. 8. Involves borrowing money from the bank

10. 9. The asset can be repossessed if payments are not made

11. 10. Interest rates are very high

12. 11. Is a short term source of finance

13. 12. Is a long term source of finance

14. Which source of finance? Answers

15. 1. Is paid in monthly payments for an agreed period of time Bank Loan Leasing Hire Purchase Mortgage

16. 2. Is specifically for buying property Mortgage

17. 3. Is an internal source of finance Retained Profit Owners/Share Capital Sale of Assets Sale and Leaseback Rights Issue

18. 4. Involves selling part of the business and sharing future profits Share Issue Venture Capital Business Angels

19. 5. Is only suitable for buying stock from suppliers Trade Credit

20. 6. Does not have to be repaid Grants Share Issue Owners/Share Capital Venture Capital Business Angels Sale of Assets Subsidies Retained Profits Rights Issue

21. 7. Would be suitable for the purchase of equipment Hire Purchase Leasing Bank Loan

22. 8. Involves borrowing money from the bank Overdraft Bank Loan Mortgage Credit Card

23. 9. The asset can be repossessed if payments are not made Mortgage Hire Purchase Leasing

24. 10. Interest rates are very high Hire Purchase Overdraft

25. 11. Is a short term source of finance Overdraft Trade Credit Credit Card

26. 12. Is a long term source of finance Mortgage Long Term Bank Loan Venture Capital Share Issue