4. Finance
Sources Of Finance — Quiz
Test your understanding of sources of finance with 5 practice questions.
Practice Questions
Question 1
A company has £200,000 of debt and £400,000 of equity. It issues £100,000 of new ordinary shares. What is its debt-to-equity ratio after the issue?
Question 2
Which key benefit does a sale and leaseback arrangement provide to a business?
Question 3
What is a primary disadvantage of financing growth using retained earnings?
Question 4
What is an advantage of raising finance through issuing debentures rather than issuing new ordinary shares?
Question 5
A soft loan provided under a government enterprise scheme is characterised by which feature?