Business Studies Multiple Choice Question – 11 June 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Lucy runs a business called LucyArts Ltd, selling a range of art products in Stafford.

LucyArts Ltd has been successful. Lucy is keen to expand the business by opening another shop. To do this she will use long-term sources of finance.

Which ONE of the following is an example of a long-term source of finance?

Select ONE answer:

  1. Sales revenue
  2. Overdraft
  3. Trade credit
  4. Share capital

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4

  1. money made from sales is not long term finance.
  2. is not long term as it is dependent on what the bank will loan and for how long.
  3. trade credit is not long term and depends on the other businesses that you trade with.
  4. Correct – is long term as people are investing in the business.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.