Question Time: Short Answer Questions 1. Insert the source of finance suitable for the following items.
Items Premises
Motor vehicles Stock
Expanding a business
2. List three examples of sources of finance under short/medium/long term. Short term
Medium term Long term Source of finance
3. The following line graph shows the annual profit for Master Plan Ltd for seven years: Master Plan Ltd – ANNUAL PROFIT (000)
€35 €30 €25 €20 €15 €10 €5 €0
2009 2010 2011 2012 2013 2014 2015 20116 2017
(a) Using the above graph, answer each of the following questions: Questions
Identify the year that had the highest profit. Identify the year that had the lowest profit. What was the company’s profit in the year 2015? If this company’s profits are shown for seven years, what is the average profit this company achieved?
4. Identify and explain three factors that a business should consider when choosing a source of finance.