Interactive Learning for Business Management Sources of Finance

Access the following web site http://www .skoool.ie Make sure your headphones are on!Select Junior Cycle Subjects BusinessScroll down to the topic - "Sources of Finance for Business” Launch lesson and go through each slide, answering the questions on this sheet as you go.

Remember to click on this icon as you go along for extra information

Slide 21. What are the three stages that a business may require finance for?

Slide 32. Name the three time periods of financial need for a business.

3. Why is it important to distinguish between each time period?

Slide 54. Fill in the time period of financial need for each of these sources of finance

SOURCE OF FINANCE TIME PERIODe.g. Retained Profits Long-term

(a) Grants and owner’s capital

(b) Bank overdraft

(c) Term loan and hire purchase

Slide 65. What are creditors?

6. Describe what is meant by an “overdraft facility”

7. What are overdrafts very useful for?

Slide 88. As well as the repayment of the loan itself, what also needs to be repaid each month?

9. What is normally required to be provided before a bank will give a business a loan?

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Slide 910. What is leasing?

11. Does the business who uses the asset (e.g. the van) own the leased asset? Y/N

Slide 1012. What is hire purchase and what is it usually used for?

Slide 1113. What is the main difference between leasing or hire purchasing for a business who want a new van?

14. Why do some businesses use hire purchase even if it is an expensive way of getting a new van?

Slide 1315. What is “capital”?

16. Who are shareholders?

Slide 1717. What three things may a business use an EU grant for?

18. Give two examples of items normally bought by a business using a long-term loan.

19. What does a bank or lender want to see to before agreeing to offer a long-term loan?

Slide 1820. Describe the sale and leaseback process.

Slide 2021. Describe 3 pieces of information asked for in a Bank Loan Application Form.

Ignore slides 22 and 23 which is not required for Higher Business Management.

Finally, launch the assessment on the web site – ignore Q11.

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