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HomeCIE IGCSE Business StudiesInternal sources of finance: retained profit, sale of assets, working capital
CIE · IGCSE · Business Studies

Internal sources of finance: retained profit, sale of assets, working capital
Practice Questions

20 CIE IGCSE Business Studies questions on Internal sources of finance: retained profit, sale of assets, working capital, each with instant feedback and a full examiner-style mark scheme.

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Question 1 · 1 mark · Difficulty 1/3

Which of the following is an internal source of finance for a business?

  1. Obtaining a government grant
  2. Taking out a bank loan
  3. Using retained profit from previous years
  4. Issuing new shares to the public
Show answer & explanation
✓ Answer: CUsing retained profit from previous years
Retained profit is money kept within the business from previous trading periods and is a classic internal source of finance. Bank loans, share issues, and government grants all involve bringing money in from external parties outside the business.
Question 2 · 1 mark · Difficulty 2/3

A business sells a factory it owns to raise funds to expand its product range. Which term best describes this action?

  1. Sale and leaseback arrangement
  2. Increasing working capital
  3. Retaining profit for reinvestment
  4. Sale of a non-current asset
Show answer & explanation
✓ Answer: DSale of a non-current asset
Selling a factory, which is a fixed or non-current asset, to raise funds is described as the sale of a non-current asset. Sale and leaseback is a specific arrangement where the asset is sold and then rented back, which is not described here. Retaining profit and increasing working capital are entirely different concepts.
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CIE IGCSE Business Studies: Internal sources of finance: retained profit, sale of assets, working capital FAQ

How many CIE IGCSE Business Studies questions on Internal sources of finance: retained profit, sale of assets, working capital are there on Kramizo?
Kramizo currently has 20 exam-board-aligned practice questions on Internal sources of finance: retained profit, sale of assets, working capital 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 Internal sources of finance: retained profit, sale of assets, working capital 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 Internal sources of finance: retained profit, sale of assets, working capital 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 Internal sources of finance: retained profit, sale of assets, working capital typically tested on CIE IGCSE Business Studies papers?
Internal sources of finance: retained profit, sale of assets, working capital 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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