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Sources of Finance

10 terms·StudBud Administration·41 plays

A Quiz to learn the NSW BOS Y12 Business Studiescourse - Internal and Extrernal sources of Finance

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Questions 10

Answers

1
What does it mean when a company has Pty Ltd after its name?
It is a company listed on the ASX
It is a private company and liability is limited
It is a company that has received a government grant.
It is a pubic company with limited liability
2
What is a short term loan from another business but guarenteed by a bank called?
Unsecured Note
Overdraft
Commercial Bill
Debenture
3
What are funds invested in a business called?
Unsecured notes
Debentures
Trade Credit
Equity
4
What is the matching principal?
Short term loans are for short term assets
both 1 & 2
neither 1 or 2
long term loans are for long term assets
5
Is capital invested by owners an internal or external source of finance?
External
Internal
6
What source of finance is an overdraft?
Internal long term debt
Internal short term debt
External short term debt
External private equity
7
What disadvantage is there to increasing private equity to raise money for the business?
The money has to be repaid
There are not enough investors to make it worthwhile
Liability for debt is increased
Ownership is diluted
8
What is selling accounts recievable to obtain cash called?
Commercial Bills
Debentures
Leasing
Factoring
9
Of what are crowd funding sites such as kickstarter an example?
Grants
Entrepreneurship
Venture Capital
Share purchase plans
10
Which long term debt has the highest interest rates?
Unsecured notes
Mortgage
Debenture
Leasing