Paper 2 · Sources of Finance
Which of the following is a common circumstance under which a business might require additional finance?
AReducing its number of product lines
BDeliberately shrinking its market share
CExpanding or growing the business
DDistributing all of its profits as dividends
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
