Kai needs £4,000 for a one-off stock purchase and expects to receive customer payments within six weeks. He wants to keep full ownership. Which source is most suitable?
Venture capital because the investor will share the ownership risk
An overdraft because the need is short term and the balance can be repaid when customers pay
Share capital because new shareholders do not expect any influence over decisions and the finance has no repayment date
A long-term loan because interest is avoided when finance is used for stock
38 exam-style questions on Edexcel GCSE Business 1.3 Putting a business idea into practice, covering 1.3.1a Financial aims and objectives, 1.3.1b Non-financial aims and objectives, 1.3.1c Why aims and objectives differ, 1.3.2a Revenue, costs and profit calculations, 1.3.2b Break even and margin of safety, 1.3.2c Interpretation of break even diagrams, 1.3.3a The importance of cash to a business, 1.3.3b The difference between cash and profit, 1.3.3c Cash-flow forecasts: inflows and outflows, 1.3.3d Cash-flow forecasts: net cash flow and balances, 1.3.4a Short-term sources of finance, and 1.3.4b Long-term sources of finance. Each one has a worked solution and a mark scheme showing where the marks go.