DQS356 Mac 2024 - Introduction - Development Finance

Which financial duration statements is incorrect?

• Duration for short term finance is from a few months to 2-3 years

• Duration for medium term finance is 2-5 years

• Duration for long term finance is from a few months to 2-3 years

• Duration for long term finance is exceeding 5 years

Which public funding sources are there? (You could select more than one answer)

• Credit company

• Treasury Bills

• Government Bonds

• Insurance company

Which method of financing represent this statement?
"Withdrawal of money from bank exceeds one's savings"

• Term Loan

• Factoring

• Overdraft

• Hire Purchase

Which of these statement is representing letter of credit?

• Purchase materials and services first and pay later

• A legal undertaking issued by a bank on behalf of a third party (e.g. a

  contractor) in which it guarantees the payment of certain sum of

  money should the contractor fail to settle his debt

• A method to transfer/sell off business debt to

  finance company

• Bank written promise that allows loan to be made with

  condition that all specific requirements are met

What are the methods of finance used by property investment companies?

• Property will be rented out, usually require long-term loans

• Use money collected through premiums to finance their

  development

• Not carry out development for investment but only

  construct properties for sale

• Issue debenture stocks which are redeemable at a

  fixed future date or by issuing preference shares