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:
- Sales revenue
- Overdraft
- Trade credit
- Profit
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
- money made from sales is not long term finance.
- is not long term as it is dependent on what the bank will loan and for how long.
- trade credit is not long term and depends on the other businesses that you trade with.
- Correct – is long term because it is an ongoing source of finance
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