Business 9609 · AS & A Level
Sources of finance
100 practice questions on Sources of finance, with worked solutions and instant marking.
State the meaning of 'start up capital' (lines 2–3).
March 2016
Analyse two suitable sources of finance that Sara might use to pay for the opening of the new shop.
March 2016
Briefly state the meaning of ‘crowd funding’ (line 16).
March 2017
Recommend which of the two venture capital proposals Tom and Amy should choose. Justify your answer.
March 2017
Analyse how a business might use break-even analysis when planning to launch a new product.
March 2018
Evaluate Paul’s decision to establish PC as a sole trader.
March 2018
Analyse two suitable sources of finance that JF could use for the option you selected in 1(c).
March 2019
Discuss the sources of finance Joe could use when starting up his business.
March 2020
Recommend the source of finance FB should select to fund the change in production method. Justify your recommendation.
March 2021
Analyse the benefits of using internal sources of finance for business growth.
March 2022
Explain one method Rehana could adopt to improve liquidity.
March 2022
Evaluate the most important factor which may influence Tomas’ choice of sources of finance for the new 3D printing machine.
March 2023
Analyse two barriers faced by an entrepreneur when starting up a business.
March 2024
Explain what is meant by the term leasing.
March 2024
Evaluate whether MLC should change from a private limited company to a public limited company.
March 2024
Analyse why it is important for a business to tell apart revenue expenditure and capital expenditure.
Summer 2016
Define what is meant by ‘start-up capital’.
Summer 2016
Discuss the finance sources MS could draw on if the joint venture proposal is agreed.
Summer 2016
Define the term 'debt factoring'.
Summer 2017
Analyse the problems that a business could face in its first year of trading.
Summer 2017
Define what is meant by 'share capital'.
Summer 2017
Analyse the rights and duties held by employees when they are stakeholders in a business.
Summer 2017
Analyse one advantage and one disadvantage to Ben and Mary of changing MM from a partnership to a private limited company.
Summer 2017
Define the term ‘long term source of finance’ from lines 18–19.
Summer 2017
Analyse two possible sources of finance that BG could use to buy the new lawnmower.
Summer 2017
Analyse why accurate cost data matters to all businesses.
Summer 2018
Define the term ‘capital expenditure’ in relation to fixed or non-current assets.
Summer 2018
Analyse the advantages of venture capital as a source of finance for a small business.
Summer 2018
Using line 15, define the term ‘retained earnings’.
Summer 2018
Explain two ways in which VC could raise its working capital.
Summer 2018
Explain two likely effects of DTY’s Board of Directors’ choice to keep retained earnings at a high level.
Summer 2018
Define what is meant by ‘retained earnings’.
Summer 2019
Explain factors that may influence the scale of operations of a business.
Summer 2019
Analyse the benefits of crowd funding as a source of finance for small businesses.
Summer 2019
Analyse the external sources of finance a multinational car manufacturer might use to fund the production of a new electric car.
Summer 2019
Analyse two sources of finance, other than selling shares, FN could use to purchase the neighbouring farm.
Summer 2019
Explain the difficulties that a small business start-up might have when trying to obtain finance from an external source.
Summer 2020
Analyse the drawbacks to a business of using debt factoring to improve its cash flow.
Summer 2020
Analyse the possible problems a new business may encounter when attempting to raise finance.
Summer 2020
Explain one source of finance that UF could use to buy new machinery.
Summer 2020
Explain the advantages for a manufacturing business of financing through sale and leaseback of non-current assets as a source of finance.
Summer 2021
'An accurate cash flow forecast is the key financial document for a clothing retailer preparing to enter a new market.' Discuss the extent to which you agree with this view.
Summer 2021
Analyse the advantages for an entrepreneur of using micro-finance as a source of start-up capital.
Summer 2021
Analyse one benefit and one drawback to AF of leasing the new machinery for apple juice production.
Summer 2021
Analyse the benefits to a business of using break-even analysis.
Summer 2022
Analyse one advantage and one disadvantage to Su of using working capital as a source of finance for the new café.
Summer 2022
Analyse two benefits to a business of government grants as a source of finance.
Summer 2023
Analyse one advantage and one disadvantage for GR of using a bank overdraft.
Summer 2023
Evaluate whether DC should expand its operations by opening its new cocoa processing factory.
Summer 2023
Explain one factor that will affect Markus’ choice of a source of finance.
Summer 2023
Analyse two sources of finance GD could use to fund the opening of its new shop.
Summer 2023
Analyse two factors that may affect a business’s choice of sources of finance.
Summer 2024
Analyse two limitations that contribution costing may create for a business.
Summer 2024
Analyse two barriers to entrepreneurship that Samira may have run into when establishing SW.
Summer 2024
Evaluate whether Samira should accept Lara's offer to invest venture capital.
Summer 2024
Analyse two external sources of finance which FW could use to purchase new machinery.
Summer 2024
Analyse two advantages to a business of using sale and leaseback of non-current assets as a source of finance.
Summer 2025
Analyse one advantage and one disadvantage to PH of using an overdraft as a source of finance.
Summer 2025
Identify one external source of finance
Summer 2025
Analyse the benefits of crowd funding as a source of finance for a small business.
Winter 2016
Analyse the advantages and disadvantages to Amir of becoming a private limited company.
Winter 2016
Use Table 1. Calculate the value of X.
Winter 2016
Analyse two possible sources of finance that John could use to finance the opening of a PP franchise.
Winter 2016
Recommend whether John should open a PP franchise or an independent shop. Justify your decision.
Winter 2016
Discuss how FFE could improve its forecast cash flow.
Winter 2016
Define what is meant by 'micro-finance'.
Winter 2017
Define the phrase 'retained earnings'.
Winter 2017
Evaluate the owners’ choice to change the legal structure of OC into a public limited company.
Winter 2017
Analyse two methods Nathan could use to improve NN’s cash flow.
Winter 2017
Analyse one advantage and one disadvantage to Navpreet of raising a mortgage on her own home to fund PP’s expansion.
Winter 2017
Define the term ‘crowd funding’ in business finance.
Winter 2018
Analyse the advantages and disadvantages for a new business of using an overdraft to help manage its cash flow.
Winter 2018
Explain how a large manufacturing business could raise finance for investment in new machinery.
Winter 2018
Define the term 'debt factoring'.
Winter 2018
Define what is meant by ‘venture capital’ (line 2).
Winter 2018
Explain one reason why break even analysis could be unsuitable for OT when deciding on the new vehicle.
Winter 2018
Analyse two external sources of finance OT could use for the new taxi.
Winter 2018
Define the term ‘overdraft’ from line 21.
Winter 2019
Analyse one internal source of finance and one external source of finance that CP could use to acquire the new machinery.
Winter 2019
Explain what is meant by ‘crowd funding’ (line 6).
Winter 2019
Define what is meant by the term ‘venture capital’.
Winter 2020
Explain why a business might stay as a private limited company rather than become a public limited company.
Winter 2020
Analyse one internal source of finance and one external source of finance that ES could use to buy a fracking licence.
Winter 2020
Analyse the advantages that an overdraft can offer a business as a source of finance.
Winter 2021
Define what is meant by ‘overdraft’.
Winter 2021
Analyse the benefits to a business of debt factoring.
Winter 2021
Recommend whether Ralph should finance the equipment to make frames by leasing his photograph printing machine or by selling it. Justify your recommendation.
Winter 2021
Analyse two factors that could affect the source of finance Obi selects for the new van.
Winter 2021
Explain the internal sources of finance a business may use to back its growth and development.
Winter 2022
Explain how a business might improve its cash flow.
Winter 2022
Explain one method MW could use to improve its cash flow.
Winter 2022
Analyse one possible advantage and one possible disadvantage to CC of using crowdfunding to finance growth.
Winter 2022
Analyse two factors that may influence PP’s selection of a source of finance for building the extra factory.
Winter 2022
Define bankruptcy.
Winter 2023
Define what the term venture capital means.
Winter 2023
Evaluate whether a bank loan is the most suitable source of finance for JC’s growth.
Winter 2023
Define the term government grant.
Winter 2024
Use Table 1.1 as your reference. Calculate the complete cost over 25 years of hire purchase if Brenda decides to use flow production.
Winter 2024
Explain one benefit for BB of using hire purchase as a source of finance.
Winter 2024
Define what the term liquidation means.
Oct/Nov 2025