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6. What is the correct definition for venture capital?

  • A special type of loan used for purchasing property
  • Where a firm sells on its debt to a third party factor
  • Capital invested at an early stage by an individual/company in return for equity in the business
  • Where a bank allows a firm to take out more money that is in its bank account

7. Which of the following is an internal source of finance?

  • Bank loans
  • Retained profit
  • Overdraft
  • Venture capital

8. Which of the following is not an example of a short term source of finance

  • Sale of assets
  • Overdraft
  • Debt factoring