Practice Based On Ownership (7.2) - Business Size and Finance

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9 questions

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6 sample questions

Question 1.
What are the two main categories of business finance based on ownership?
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Think about where the money comes from.
Question 2.
Give an example of owned capital.
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Consider money that belongs to the owners.
3Question 3.
What is owned capital?
- A. Funds from owners
- B. Funds from banks
- C. None of the above
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Think about who provides the capital.
4Question 4.
Borrowed capital needs to be repaid with interest.
- True
- False
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What happens if you borrow money?
Question 5.
Analyze a hypothetical company’s use of 60% borrowed capital. How could this impact its operations and financial health?
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Consider how debt affects stability.
Question 6.
Propose a strategy for a small business to effectively balance owned and borrowed capital.
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Think about stability versus growth.

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