Practice Sources Of Business Finance (7) - Business Size and Finance

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10 questions

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6 sample questions

Question 1.
What is short-term finance?
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Think about the duration.
Question 2.
Give an example of owned capital.
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Consider where the funds are coming from.
3Question 3.
What is the main characteristic of short-term finance?
- Lasts over 5 years
- Up to 1 year
- Between 1 and 5 years
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Think of terms associated with finance timeframes.
4Question 4.
True or False: Owned capital is considered borrowed capital.
- True
- False
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Consider the origin of the funds.
Question 5.
A startup requires $200,000 for its first year of operation. It can either borrow at 5% interest or use personal savings without any charges. Analyze the risks and benefits of each choice.
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Consider the security of personal savings against the liabilities of debt.
Question 6.
A large corporation is evaluating whether to finance a new project through equity financing or debt financing. Discuss the pros and cons of each option in the context of risk and control.
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Consider how each type affects ownership and financial stability.

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