Paper 2 · June 2019 · Sources of Finance
Which of the following is a common circumstance under which a business might require additional finance?
AExpanding or growing the business
BDistributing all of its profits as dividends
CReducing its number of product lines
DDeliberately shrinking its market share
Explanation
Businesses commonly need finance to start up, purchase fixed assets, fund research and development, bridge cash flow shortfalls, or expand and grow, rather than when scaling back or distributing profits.
Derived from ZIMSEC Business_studies Paper 2, June 2019, Q46