Start learning →

MBA Finance Sources of Business Finance — practice questions

Explore 30 free Sources of Business Finance questions in MBA Finance Business Studies. Open each question or exercise to read its content, reference answers and available explanation.

Practise Sources of Business Finance with Quill →

Sources of Business Finance questions and exercises with answers

Showing questions 1–30 of 30.

Funds needed to buy land, buildings, plant and machinery are the firm's:Read the answer and worked solution →Funds used to hold stock, bills receivable and to pay wages and rent are the firm's:Read the answer and worked solution →A trading concern usually needs how much fixed capital compared with a manufacturing concern?Read the answer and worked solution →A firm selling on credit with a slow turnover needs more:Read the answer and worked solution →Sources that meet needs for a period exceeding five years are:Read the answer and worked solution →Funds required for more than one year but less than five years come from:Read the answer and worked solution →Trade credit, bank loans and commercial paper mainly provide funds for:Read the answer and worked solution →Short-term financing is most common for financing:Read the answer and worked solution →Seasonal businesses that build stock before the selling season typically need:Read the answer and worked solution →Funds provided by the owners of an enterprise, including reinvested profits, are:Read the answer and worked solution →Which pair are the two important sources of owner's funds?Read the answer and worked solution →Loans from banks, debentures, public deposits and trade credit together form:Read the answer and worked solution →A burden of borrowed funds is that interest must be paid even when:Read the answer and worked solution →Collecting receivables faster, selling surplus stock and ploughing back profit are examples of:Read the answer and worked solution →Suppliers, lenders and investors outside the firm are:Read the answer and worked solution →A limitation of internal sources of funds is that they:Read the answer and worked solution →Profits kept back in the business instead of paid as dividend are:Read the answer and worked solution →Which is a merit of retained earnings?Read the answer and worked solution →Excessive ploughing back of profits may cause dissatisfaction because shareholders get:Read the answer and worked solution →Credit extended by one trader to another for buying goods is:Read the answer and worked solution →In the buyer's records, trade credit appears as sundry creditors or:Read the answer and worked solution →Trade credit is granted to customers who have reasonable financial standing and:Read the answer and worked solution →Catch the owner's fundsRead the answer and worked solution →Pop the short-term sourcesRead the answer and worked solution →Run the finance periodsRead the answer and worked solution →Slice the finance wordsRead the answer and worked solution →Internal or externalRead the answer and worked solution →Sort period, ownership and originRead the answer and worked solution →Type the numberRead the answer and worked solution →Business finance bingoRead the answer and worked solution →

Worked practice questions

Funds needed to buy land, buildings, plant and machinery are the firm's:

  1. Fixed capital requirements
  2. Working capital requirement
  3. Trade credit requirement
  4. Seasonal stock requirement
Show answer and solution

Correct answer: A. Fixed capital requirements

1. These assets stay in the business a long time. 2. They are bought when the firm starts. 3. This need is fixed capital. _Source: syllabus Business Studies, Chapter 8, Sources of Business Finance._

Open this question →

Funds used to hold stock, bills receivable and to pay wages and rent are the firm's:

  1. Loan capital
  2. Working capital
  3. Fixed capital
  4. Share capital
Show answer and solution

Correct answer: B. Working capital

1. They cover day-to-day operations. 2. They finance current assets and expenses. 3. That is working capital. _Source: syllabus Business Studies, Chapter 8, Sources of Business Finance._

Open this question →

A trading concern usually needs how much fixed capital compared with a manufacturing concern?

  1. A smaller amount
  2. A larger amount
  3. The same amount
  4. Twice the amount
Show answer and solution

Correct answer: A. A smaller amount

1. Fixed capital depends on the nature of business. 2. Manufacturing needs heavy plant. 3. So trading needs a smaller amount. _Source: syllabus Business Studies, Chapter 8, Sources of Business Finance._

Open this question →

How to practise

  1. Choose a Sources of Business Finance question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Business Studies topics

Business StudiesCorporate FinanceFinancial Management