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3.3 - 15 - Financing Growth Flashcards | StudBud
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3.3 - 15 - Financing Growth
3.3 - 15 - Financing Growth
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Questions
15
Answers
1
"Having the help from a 'Venture Capitalist' will result in repayments." True or False?
True
False
2
What does the term "Floating-a-company" mean?
Long term loan, interest is paid at regular intervals
Profit used to invest back into the company
Drawing more money than what is actually available
Offering shares in the company to the public
3
"A business making a loss at the end of the month can use 'Retained Profit'" True or False?
True
False
4
"Bonds are traded on the stock market." True or False?
True
False
5
What is the definition of 'Retained Profit'?
Profit which is kept back to reinvest into the business
Something that a business owns
A part ownership in a business
Profit calculated with the exclusion of taxes, wages, etc
6
Definition of 'Internal Finance'
Money obtained from a loan shark called Internal Finance
Money obtained from within the business
A small loan of a million dollars
Money obtained from outside the business
7
"Getting a new loan is much easier than issuing shares." True or False?
True
False
8
"Companies listed on the stock exchange are Private Limited Companies." True or False?
False
True
9
Which of these are 'Long Term Sources Of Finance'
Sale Of Asset
Overdraft
Bank Loan
Trade Credits
10
"When an item is labelled as 'Leased', you own it." True or False
False
True
11
What is 'Overdraft'?
Loans made to a company
Where firms sell their invoices to a factor such as a bank
Withdrawing more than what you have from your bank account
Special type of loan used for buying a property
12
"Issuing new shares is an Internal Source of Finance" True or False?
False
True
13
"A person in debt is susceptible of taking out a bank loan." True or False?
True
False
14
"A brand new business is capable of using retained profit." True or False?
False
True
15
Is the 'Sale of Asset' an Internal or External Source of Finance?
External
Internal