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Edexcel IGCSE Business Studies 3.1.2 Internal Sources of Finance Questions

Practise recognising personal savings, retained profit and selling assets, then explain their effects on business finance decisions.

Syllabus
First assessment 2019
Course
Business Studies 4BS1

Exam points

  • distinguish internal finance from loans, overdrafts, venture capital and crowdfunding
  • explain a disadvantage of using retained profit or personal savings in a business context
  • analyse how using internal finance can support expansion without borrowing costs

Edexcel IGCSE Business Studies 3.1.2 Internal Sources of Finance Questions question 1

[Maximum number: 1]

Most people recognise Heinz for the phrase '57 varieties' even though it now produces many more than the original 57 varieties. H J Heinz, the founder of the Heinz business, believed the phrase sounded lucky.

Kraft Heinz is a world-wide producer of food products. It was formed from the merger of Kraft Foods and Heinz in 2015. This created the third largest food and drinks business in the USA and the fifth largest food and drinks business in the world.

Kraft Heinz has over 24 different brands, including Greenseas in Australia and Nutri+Plus in New Zealand. America has the largest number of brands from Maxwell House to Cool Whip. Kraft Heinz produces many different products including tomato sauce, 'Mac\&Cheese', pasta and its famous baked beans that are used and eaten by many people.

Kraft Heinz uses many methods to advertise its products. These include posters, billboards and leaflets in supermarkets.

Which one of the following would be a long-term source of finance for a sole trader?

Select one answer.

A

Trade credit

B

Overdraft

C

Personal savings

D

Share capital

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