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HomeCIE IGCSE Business StudiesExternal sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding
CIE · IGCSE · Business Studies

External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding
Practice Questions

20 CIE IGCSE Business Studies questions on External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding, each with instant feedback and a full examiner-style mark scheme.

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✨ Revision guide includes key terms, worked examples and exam technique for External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding.

Try 2 sample questions on External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding

Question 1 · 1 mark · Difficulty 1/3

A business borrows $50,000 from a bank and agrees to repay it with interest over five years. What type of external finance is this?

  1. A debenture issued to the public
  2. An overdraft facility
  3. Share capital raised from shareholders
  4. A bank loan with fixed repayments
Show answer & explanation
✓ Answer: DA bank loan with fixed repayments
A bank loan involves borrowing a fixed sum repaid over an agreed period with interest, exactly as described. An overdraft is short-term borrowing up to a limit, not a fixed multi-year repayment. A debenture is a long-term loan issued to investors via a certificate, not a direct bank arrangement. Share capital involves selling ownership stakes, not borrowing.
Question 2 · 1 mark · Difficulty 1/3

Which of the following best describes microfinance as a source of external finance?

  1. Finance raised by selling shares to a small group of private investors
  2. Large loans provided by commercial banks to established corporations
  3. Small loans and financial services provided to entrepreneurs with limited access to traditional banking
  4. Government grants given to businesses in deprived regions with no repayment required
Show answer & explanation
✓ Answer: CSmall loans and financial services provided to entrepreneurs with limited access to traditional banking
Microfinance refers to the provision of small-scale financial services, including small loans, to individuals or small businesses that lack access to conventional banking. Option A describes standard commercial banking, not microfinance. Option C describes a grant, which is internal or government support, not a loan. Option D describes private equity or business angel investment.
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CIE IGCSE Business Studies: External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding FAQ

How many CIE IGCSE Business Studies questions on External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding for CIE IGCSE Business Studies, with new questions added every week. Each question gives you instant feedback and a full examiner-style mark scheme that tells you exactly what would earn marks on a real CIE paper. The questions span the full difficulty range — from straightforward recall (level 1) right up to multi-step reasoning and evaluation (level 3) — so the bank works for first-pass revision and final exam-week stress testing alike.
Is Kramizo free for CIE IGCSE students preparing for Business Studies?
Yes — completely free. Every student gets 45 questions a day on the free plan, with no card required and no trial countdown. That free quota works across every subject and every topic in our bank, so you can mix External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding practice with other Business Studies topics or even switch to a totally different CIE subject without paying anything. Kramizo's optional Pro plan removes the daily cap and adds detailed progress analytics, but the free tier is the real product — used by thousands of GCSE, IGCSE and CSEC students.
Are the External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding questions aligned to the official CIE IGCSE Business Studies syllabus?
Every question is written against the published CIE IGCSE Business Studies specification, including the exact command words (state, describe, explain, calculate, evaluate, etc.), mark allocations, and difficulty tier you'd see on a real CIE paper. Explanations are written in the style of official examiner mark schemes — they tell you what is being awarded marks and why distractors are wrong, not just whether you got it right. The bank is continually refined to match the latest syllabus updates from CIE.
How is External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding typically tested on CIE IGCSE Business Studies papers?
External sources of finance: loans, overdrafts, share capital, debentures, leasing, microfinance, crowdfunding appears across multiple question types on real CIE IGCSE Business Studies papers — most commonly as multiple-choice questions in the objective section, structured short-answer questions in the main paper, and occasionally as part of an extended response. Kramizo's practice bank reflects that mix: 4-option MCQs, true/false statements, fill-in-the-blank key terms, multi-select questions, and ordering questions. Working through the bank gives you exposure to every question style examiners actually use.

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