Sources of finance exam tips

Exam tips

• Answering finance source questions

  Start by naming the finance type, state whether it is internal or external, explain why it is suitable for the business context, and finish with a brief example.

  This structure shows clear understanding of the source, its classification, and its practical relevance, meeting exam expectations.

• Structure your answer clearly

  Begin with a concise statement of the finance method, then list its advantages, followed by disadvantages, and finish with a contextual recommendation.

  Examiners look for balanced analysis and logical flow; this structure ensures you cover all required elements.

• Structure your evaluate answers clearly

  Start with a brief statement of the criteria, then compare each option against those criteria, and conclude with a justified recommendation.

  This approach demonstrates analytical thinking and ensures all relevant factors are considered.