Lucy was fed up with taking orders from other people at work. She wanted personal satisfaction and financial security so decided to set up as a sole trader selling indoor plants using modern gardening techniques.
After a successful 24 months trading on the internet from home she wanted to expand the business.
Lucy needed to raise £35 000 to buy a nursery and buy gardening equipment.
As a sole trader, which ONE of the following is a long-term source of finance for Lucy?
Select ONE answer:
- Overdraft.
- Trade credit.
- Retained Profit.
- Asset sales.
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 3
This work is licensed under a Creative Commons Attribution 4.0 International License.
The Multiple Choice Questions Blog 