Finance and Accounting Exam Practice Paper 1

Start Up Capital, Capital for Expansion✍🏽

SECTION B:   8 mark PAPER 1

(a) Analyse the possible problems that a new business might experience when trying to raise finance. [8]

Legal Structure and Sources of Finance ✍🏽

SECTION A:   (b) 3 mark PAPER 1

(b) Explain two reasons why a business may use equity finance. [3]

Short Term Finance and Long Term Finance ✍🏽

SECTION A:   (b) 3 mark PAPER 1

(b) Briefly explain the distinction between short-term and long-term sources of business finance. [3]

External Sources ✍🏽

SECTION A:   (a) 2 mark (b) 3 mark PAPER 1

(a) Define the term ‘venture capital’. [2]

(b) Explain two ways that venture capitalists might help a business. [3]

Uses of Cost Information✍🏽

SECTION A:   (b) 3 mark PAPER 1

(b) Briefly explain two reasons why cost information is useful for monitoring the financial performance of a business. [3]

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