Sources of Finance Quiz by Shubhrata Shrestha | Aug 27, 2025 | 0 comments Sources of Finance Quiz 1. Which of the following is an internal source of finance? A) Loan capital B) Sale of assets C) Crowdfunding D) Trade credit None 2. Public limited companies raise finance by: A) Selling shares privately B) Taking overdrafts C) Issuing an Initial Public Offering (IPO) D) Microfinance None 3. Which source of finance is most suitable for short-term cash-flow issues? A) Leasing B) Trade credit C) Share capital D) Business angels None 4. A major disadvantage of retained profit is: A) Increases interest burden B) Dilution of ownership C) Limited availability if profits are low D) Requires external approval None 5. Which of the following is an example of loan capital? A) IPO B) Mortgage C) Crowdfunding D) Overdraft None 6. Business angels are best described as: A) Banks providing long-term loans B) Wealthy individuals investing in high-risk ventures C) Online communities funding businesses D) Microfinance lenders in rural areas None 7. The main advantage of leasing compared to buying an asset is: A) Lower total cost B) No ownership obligations and lower upfront expense C) Interest-free borrowing D) Provides retained earnings None 8. Crowdfunding is most closely linked to: A) Banks and insurance companies B) Individuals contributing small amounts online C) Government subsidies D) Venture capital funds None 9. Overdrafts are classified as: A) A long-term source of finance B) A short-term source of finance C) An internal source of finance D) A source with no repayment obligation None 10. Which of the following is an external source of finance? A) Retained profit B) Personal funds C) Sale of assets D) Microfinance None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
