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QLDBusiness StudiesQuick questions
Unit 1: Business creation
Quick questions on Sources of finance for a new business (QCE Business Unit 1)
6short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is two ways to classify finance?Show answer
Every source of finance can be classified on two dimensions.
What is the matching principle?Show answer
The core decision rule is to match the term of the finance to the life of what it funds.
What is plan?Show answer
Match each need to a source, then justify on cost, risk and control.
What is q1?Show answer
Classify each of the following as internal or external, and as debt or equity: owner's savings, a bank term loan, retained profits, trade credit, a venture-capital investment. [3 marks]
What is q2?Show answer
Explain the matching principle and give one example of applying it. [3 marks]
What is q3?Show answer
A new business owner is choosing between a 50,000 for a 30 percent share. Recommend an option and justify it using cost, risk and control. [4 marks]
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