Formative Assessment Topic 2&3 Short term & Long term Financing

What is two type sources of short-term credit?

• Unsecured funding and Secured funding

• Secured funding and sure funding

• Unsure funding and Unsecured funding

• Sure funding and Unsure finding

What is Unsecured funding?

What is Secured funding?

Gives an example of unsecured funding.

Give an example of secured funding.

Iskandar Company required additional funds of RM 450,000 to expand its business and target to settle it in 9 months. Suppose Squid Bank offers 8% for a discounted loan to Iskandar Company and needs 20% for the balance of compensation in the Squid Bank account. Calculate Amount Received (AR).

• RM 451,000

• RM452,000

• RM453,000

• RM450,000

Iskandar Company required additional funds of RM 450,000 to expand its business and target to settle it in 9 months. Suppose Squid Bank offers 8% for a discounted loan to Iskandar Company and needs 20% for the balance of compensation in the Squid Bank account. Calculate Amount Borrow (AB).

• RM607,108.11

• RM608,108.11

• RM609,000.11

• RM610,000.11

Iskandar Company required additional funds of RM 450,000 to expand its business and target to settle it in 9 months. Suppose Squid Bank offers 8% for a discounted loan to Iskandar Company and needs 20% for the balance of compensation in the Squid Bank account. Calculate the interest.

• RM 37,000.49

• RM 36,000.49

• RM 36,486.49

• RM 35,000.49

Iskandar Company required additional funds of RM 450,000 to expand its business and target to settle it in 9 months. Suppose Squid Bank offers 8% for a discounted loan to Iskandar Company and needs 20% for the balance of compensation in the Squid Bank account. Calculate the Interest.

• RM 37,000.49

• RM 36,000.49

• RM 36,486.49

• RM 35,000.49

Iskandar Company required additional funds of RM 450,000 to expand its business and target to settle it in 9 months. Suppose Squid Bank offers 8% for a discounted loan to Iskandar Company and needs 20% for the balance of compensation in the Squid Bank account. Calculate the compensating balance (CB).

• RM 121,660.62

• RM 121,621.62

• RM 122,640.62

• RM 121,650.62