Internal and external sources of finance: past paper questions
Real questions on internal and external sources of finance
The newest 20 of 46 written questions. Open one to see it on the real paper.
- 9609/13 · May/June 2026 · Q2a[2]
Define the term ‘capital expenditure’.
See it on the paper → - 9609/23 · May/June 2026 · Q1c[8]
Analyse one advantage and one disadvantage to JT of using an overdraft.
See it on the paper → - 9609/12 · February/March 2026 · Q5a[8]
Analyse two reasons why a lack of finance may lead to business failure.
See it on the paper → - 9609/11 · October/November 2025 · Q2b[3]
Explain one external source of finance for a business.
See it on the paper → - 9609/11 · May/June 2025 · Q4[5]
Analyse one way a business might fail as a consequence of lack of finance. Section B Answer one question only. EITHER
See it on the paper → - 9609/12 · May/June 2025 · Q6a[8]
Analyse two advantages to a business of using sale and leaseback of non-current assets as a source of finance.
See it on the paper → - 9609/21 · May/June 2025 · Q2c[8]
Analyse one advantage and one disadvantage to PH of using an overdraft as a source of finance.
See it on the paper → - 9609/22 · May/June 2025 · Q2a(i)[1]
Identify one external source of finance.
See it on the paper → - 9609/23 · May/June 2025 · Q2b(ii)[3]
Explain one factor influencing the supply of FF’s products.
See it on the paper → - 9609/13 · October/November 2024 · Q3a[2]
Define the term government grant.
See it on the paper → - 9609/13 · October/November 2024 · Q3b[3]
Explain one advantage of using retained earnings as a source of business finance.
See it on the paper → - 9609/11 · May/June 2024 · Q6a[8]
Analyse two factors which may influence a business’s choice of sources of finance.
See it on the paper → - 9609/12 · May/June 2024 · Q1a[2]
Define the term takeover.
See it on the paper → - 9609/23 · May/June 2024 · Q2c[8]
Analyse two external sources of finance that FW could use to invest in new machinery.
See it on the paper → - 9609/32 · February/March 2024 · Q5[12]
Evaluate the impact on CD of the appreciation of country K’s exchange rate.
See it on the paper → - 9609/12 · October/November 2023 · Q3b[3]
Explain one advantage of using retained earnings as a source of finance.
See it on the paper → - 9609/13 · October/November 2023 · Q3a[2]
Define the term venture capital.
See it on the paper → - 9609/13 · October/November 2023 · Q3b[3]
Explain one disadvantage of using trade credit as a source of finance.
See it on the paper → - 9609/23 · October/November 2023 · Q1d[12]
Evaluate whether a bank loan is the most appropriate source of finance for JC’s growth.
See it on the paper → - 9609/12 · May/June 2023 · Q5a[8]
Analyse two benefits to a business of government grants as a source of finance.
See it on the paper →
What examiners said
Many candidates demonstrated good knowledge of retained earnings for this question and gained three marks. Strong answers explained that retained earnings can be a vital internal source of finance. Many candidates linked knowledge points to produce a developed explanation for example, ‘retained earnings are an internal source of finance therefore the business does not have to use other sources of...
— Examiner report, October/November 2023, 9609/12 Q3(b) (Cambridge)
Many candidates gained maximum marks for a clear and accurate definition focusing on the supply of investment/risk capital to business by venture capitalists or venture capital companies. Weaker answers were unable to do more than repeat the words in the question. Some candidates confused the business term with joint ventures.
— Examiner report, October/November 2023, 9609/13 Q3(a) (Cambridge)
This proved to be a difficult question for many candidates. Many had no real understanding of ‘trade credit’. Strong answers recognised that trade credit is an agreement by a business with suppliers to purchase supplies without an immediate payment - payment can be made later. This is in effect a loan between a business and its supplier, a form of short-term funding/credit. Disadvantages of such t...
— Examiner report, October/November 2023, 9609/13 Q3(b) (Cambridge)
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