What to create	Quiz
Which subject	Business
What age group	Year or Grade 10
What topic	Sources of finance
Question types	Close-ended
Number of questions	6
Number of answers	1
Correct answers	Exactly 1
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Business Quiz: Sources of Finance (Year 10)

Instructions

Answer the following questions by selecting the correct option. Each question has only one correct answer.

Questions

1. What is the definition of equity finance?

   • A. Borrowing money that must be paid back with interest
   • B. Raising funds by selling shares in a company
   • C. Money earned from business operations
   • D. Funds obtained from government grants

2. Which of the following is a disadvantage of using bank loans as a source of finance?

   • A. Quick access to funds
   • B. Requires repayment with interest
   • C. No loss of ownership in the business
   • D. Flexible repayment terms

3. What type of finance involves using personal savings to fund a business?

   • A. Crowdfunding
   • B. Venture capital
   • C. Personal finance
   • D. Public finance

4. Which source of finance is often used for startup businesses due to less stringent requirements?

   • A. Invoice financing
   • B. Angel investors
   • C. Corporate bonds
   • D. Retained earnings

5. What is one advantage of using trade credit as a source of finance?

   • A. Immediate cash flow
   • B. Delayed payment period
   • C. No risk of losing equity
   • D. Fixed interest rates

6. What do businesses typically offer in exchange for venture capital funding?

   • A. Fixed monthly payments
   • B. Equity or ownership stakes
   • C. Certificates of deposit
   • D. Loan collateral

Answers

Select the letter corresponding to your choice for each question. Good luck!