Practice Factors Affecting Choice Of Finance (8) - Business Size and Finance

Practice: Factors Affecting Choice of Finance

Lesson 8Business Size and Finance

Practise this section

9 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What does 'time period' refer to in finance?
Show hintHide hint
Think about immediate versus future needs.
Question 2.
What is equity financing?
Show hintHide hint
Consider ownership implications.
3Question 3.
What is the main factor influencing the time period needed for financing?
- Short-term needs
- Long-term investments
- Interest rates
Show hintHide hint
Think about the immediacy of need.
4Question 4.
True or False: Control over a business can be affected by taking equity financing.
- True
- False
Show hintHide hint
Consider what happens to ownership with equity.
Question 5.
You are a finance manager in a new tech startup. Your projected operating costs for the next year are Rs. 12 lakhs, and you need Rs. 5 lakhs for immediate equipment purchase. What types of financing should you consider given your short-term and long-term needs?
Show hintHide hint
Think about rapid access and future security.
Question 6.
An established company is considering taking on additional debt for expansion. Discuss the factors they should evaluate before making a decision.
Show hintHide hint
Weigh current versus potential future benefits.

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