Source of finance introduction revision

What is finance?

• Finance is matters related to the management, creation, and study of how money is created and printed

• Finance is matters related to the management, creation, and study of money and investment.

• Finance is matters related to the cash inflow, creation, and study of money and investment.

• Finance is matters related to the cash outflow, creation, and study of money and investment.

Which option is not one of the reasons of why finance is important?

• Start-up capital

• Working capital

• Planning and approval of new office building

• Research and development

Which business expense is not included under revenue expenditure?

• Payment of insurance's premi

• Smaller-scale software initiative or subscription.

• Purchase of heavy vehicles

• Smaller-scale software initiative or subscription.

Which one is not the example of capital expenditure?

• Purchases of property

• Purchases of land

• Purchases of heavy equipment

• Purchases of vehicle's parts

Distinguish between liquidity and liquidation.

• Liquidity is the capability of a business to pay its short-term debts while liquidation is when a business stop trading but not all of its assets are sold to pay suppliers & other creditors

• Liquidity is the capability of a business to pay its short - term debts while liquidation is when a business stop trading & its assets are sold to pay suppliers & other creditors

• Liquidity is the capability of a business to pay its long - term debts while liquidation is when a business stop trading & its assets are sold to pay suppliers & other creditors

• Liquidity is the capability of a business to pay its long - term debts while liquidation is when a business cease its trading & screening the assets to be sold and kept

What is a business angel?

• Business angels are non-committed entrepreneurial individuals who provide capital in return for a proportion of the company equity. They take a high personal risk in the expectation of owning part of a growing and successful business.

• Business angels are eager entrepreneurial individuals who provide capital in return for a proportion of the company's retained profit. They take a high personal risk in the expectation of owning part of a growing and successful business.

• Business angels are wealthy, entrepreneurial individuals who provide capital in return for a proportion of the company's retained profit. They take a moderated personal risk in the expectation of owning part of a growing and successful business.

• Business angels are wealthy, entrepreneurial individuals who provide capital in return for a proportion of the company equity. They take a high personal risk in the expectation of owning part of a growing and successful business.

What does internal mean?

• A source from within the business

• A source from outside the business

What does external mean?

• A source from within the business

• A source from outside the business