Practice Examples Of Finance In Business (2.7)

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11 questions

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4 cards from this section. Quick, good the night before a test.
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6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
5 questions · about 3 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is owned capital?
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Think about the personal investments made by entrepreneurs.
Question 2.
Provide an example of borrowed capital.
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Consider loans that must be repaid.
3Question 3.
Which of the following is an example of owned capital?
- Bank Loans
- Personal Savings
- Issued Shares
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Think about who provides the funds directly.
4Question 4.
True or False: Short-term finance is required for more than five years.
- True
- False
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Consider how long businesses generally need such funds.
Question 5.
A new tech startup needs $500,000 to develop its first product. Discuss the advantages and disadvantages of funding this entirely through owned capital vs. a mix of owned and borrowed capital.
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Evaluate risks versus benefits in decision-making.
Question 6.
A seasonal store anticipates high demand for the holidays. Identify the financial strategy that might be employed and discuss its relevance.
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Focus on immediate needs and seasonal sales patterns.

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