Practice Types Of Finance Based On Duration (2.3)

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8 questions

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6 sample questions

Question 1.
Define short-term finance.
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Think of everyday business expenses.
Question 2.
What is medium-term finance used for?
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Consider machinery or vehicles.
3Question 3.
What type of finance covers a duration of less than one year?
- Short-Term
- Medium-Term
- Long-Term
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Think about everyday businesses.
4Question 4.
True or False: Medium-term finance typically lasts more than five years.
- True
- False
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Remember the duration breakdown.
Question 5.
A business plans to expand its market reach. Would it require short, medium, or long-term finance? Justify your answer.
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Think about the scale of the investment needed.
Question 6.
You have $20,000 needed in two months for an immediate operational cost but also expect to spend $70,000 on new machinery over four years. How would you categorize these two financial needs?
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How long will each investment be active?

4 more questions in this section. Enroll free to practise them all.