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3.1 : Accounts & Finance Flashcards | StudBud
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3.1 : Accounts & Finance
3.1 : Accounts & Finance
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Business Management Chapter 3 Section 1 : Terms you need to know
Flashcards
12 cards
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Practice quiz
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Questions
12
Answers
1
Which of the following factors
Do
not influence financing decision
Flexibility
Cost
Nature of business
Size of borrowing
2
Which of the following statements is
False
?
Sole traders have no business risk
Retained profit is the source of finance for future activity
Not fully employed assets can be sold to raise cash
The amount the owner has in savings limits a financial firm.
3
Which of the following is the most flexible of all sources of finance?
Trade credit
Leasing
Debt factoring
Bank overdrafts
4
Which of the following is an example of Liquidity?
Paying bills from savings
Buying raw material by issuing Debentures
A firm being able to pay its Long-Term debts
A firm being able to pay its Short-Term debts
5
Traditional Commercial banks
can
provide micro finance loans
True
False
6
Which of the following are
NOT
examples of
Long-Term
loans?
Debentures
Rights Issue
All of the above
Sale of Shares
7
What is working Capital?
Capital to pay for business liability
capital collected through work
startup capital to set up a business
Day-to-day running costs of a business
8
Business Angels are a good source of
Long-Term
Finance
False
True
9
Which of the following statements is
False
?
Equity finance is finance raised through sale of shares.
Debentures are an example of Medium-Term finance.
Hire purchase is purchasing an asset over a period of time.
Leasing is renting equipment by paying rent
10
What is "Seed Money"
Agricultural Practice
Money gained by selling planted seeds
Money required to start a business
Startup Capital
11
Business should not depend on
subsidies
because
I Don't Know
They might be withdrawn due to government policy change
They become inefficient
They may increase debt due to poor productivity
12
Which is not an example of external finance?
Personal savings
Debentures
Bank loan
Bank overdrafts
