Source of Finance

Worked examples (6)

• 1Match the form to the finance it can use (4 marks)
• 2Classify which forms can issue shares (4 marks)
• 3Explain why a sole trader's finance is limited (5 marks)
• 4Explain the finance gained by becoming an Ltd (5 marks)
• 5Analyse how ownership form constrains finance (8 marks)
• 6Analyse the finance benefit of becoming a plc (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style

Worked examples (6)

• 1Classify sources as internal or external (4 marks)
• 2Classify sources as short-term or long-term (4 marks)
• 3Explain retained earnings as a source (5 marks)
• 4Explain when an overdraft beats a loan (5 marks)
• 5Analyse sale and leaseback (8 marks)
• 6Analyse share capital vs a bank loan (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style

Worked examples (6)

• 1Identify the factor at work (4 marks)
• 2Classify the control effect of each source (4 marks)
• 3Explain matching the source to the purpose (5 marks)
• 4Explain how existing debt limits choices (5 marks)
• 5Analyse cost vs control in the choice (8 marks)
• 6Analyse the value of flexibility (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style

Worked examples (6)

• 1Select the most appropriate source for each scenario (4 marks)
• 2Rule out the unsuitable source (4 marks)
• 3Recommend a source for a sole trader's van (5 marks)
• 4Recommend a source for a short-term cash gap (5 marks)
• 5Analyse the choice for a plc's expansion (8 marks)
• 6Analyse the choice for a heavily indebted firm (6 marks)

Model answers (6)

• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A style
• ✓Model answer — 9609 Paper 1 Section A / Paper 2 style
• ✓Model answer — 9609 Paper 1 Section B(a) style
• ✓Model answer — 9609 Paper 1 Section B(b) style
• ✓Model answer — 9609 Paper 1 Section B (full essay) / Paper 2 (e) style