3.1 Students 2020

Which of the following does not describe "Fixed assets"? (3.1)

• Are items that have long term value and can be used over again
• Help to determine the scale of a business’s operations
• Have the purpose of regenerating money for the business
• Are cheap
• Can provide collateral

Should a low-income South American farmer who plants chilis for a living consider microfinance?

• Yes
• No

Which classification of 'sources of finance' is leasing relevant to?

• Internal source

• external source

• raw materials costs

What is debentures?

• essentially long term loans issued by a business
• Secured loan for purchase prooerty
• catered to meet specific developement needs of borrower
• businesses decide to ‘go public’ by floating their shares on a stock exchange for the first time
• Existing companies can raise further finance by selling more sales

Kickstarter.com is an example of which source of finance

• Donation
• Grant
• Crowd-funding
• Sponsorship
• Subsidy

Microfinance is a category of financial services targeting individuals and small businesses who lack access to conventional banking and related services

• true
• false

What is share capital?

• The finance a company raises by issuing common or preferred stock.

• The finance a company raises from the sale of shared assets

• the building that the company share with its business partners

money needed to run a business which is raised from borrowing rather than shares.

• Grant
• Leasing
• Loan capital
• Retained profits
• Personal Funds

Which sources are not internal source of finance?

• Sale of assets

• Loan capital

• Personal funds

• Retained profits

What is the time period of more than tweleve months but less than five years?

• Short term

• medium term

• Long term