1) This means money the owner has personally saved to invest into the business..  a) hire purchase b) Selling shares c) Partnership capital d) Owner's savings 2) This means money each partner brings into the business when forming or joining a parternship. a) Bank loan b) Venture capital c) Owner's savings d) Partnership capital 3) This means invited people to purchase a 'share' of the business in return for a share of the profits. a) Retained profits b) mortgage c) Government grants d) Selling shares 4) A sum of money given by the bank to be paid bank in instalments with interest. a) Bank loan b) Government grants c) Owner's savings d) Bank overdraft 5) Sum of money lent by family and friends to be paid back at an agreed time. Generally without interest. a) Government grants b) Loan from family or friends c) Owner's savings d) hire purchase 6) Sum of money given by the government to an organsation for a specific purpose. a) Owner's savings b) Loan from family or friends c) Bank loan d) Government grants 7) A business can agree with the bank, that it can take out more money that it actually has in its account. a) hire purchase b) Selling shares c) Bank overdraft d) Loan from family or friends 8) purchasing machinery or equipment by paying the cost of the item plus interest in equal instalments. a) Bank loan b) Venture capital c) hire purchase d) Owner's savings 9) large sum of money given by the bank linked to property which can be paid back over a long period of time. a) Government grants b) mortgage c) Venture capital d) Retained profits 10) This is when companies keep back their profits from previous years as savings, and can use them when they need large sums of money. a) Retained profits b) Venture capital c) Bank loan d) Owner's savings

S5 Sources of Finance

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