Tutorial Questions

1. What are the specific features of debt finance? Give some examples of debt finance.

2. Why are start-ups and small firms viewed as being more risky than large enterprises?

3. Which is better – debt or equity funding? Give reasons for your answer.

4. Why does the character of a loan applicant matter to a lender, even when their loans
have been guaranteed by sufficient collateral?

5. Why do entrepreneurs and small business owner-managers often face difficulties in

accessing government backed schemes?

6. What are the three main ways to categorise business financing?

7. What is venture capital and how does it work?

8. What are the similarities and differences between business angels and venture capital
financiers?