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Finance Sources Quiz

Authored by M. Attan

Business

9th - 12th Grade

Finance Sources Quiz
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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main advantage of using retained profits as a source of finance?

Cost-effective and non-debt financing option

Limited flexibility in using retained profits as finance

Increased risk of bankruptcy with retained profits

High interest rates associated with retained profits

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Fill in the blank: A loan from a bank is an example of _______ finance.

debt finance

angel finance

venture finance

equity finance

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which source of finance involves selling shares in the company?

Venture capital

Equity financing

Debt financing

Crowdfunding

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

State one disadvantage of using a bank loan as a source of finance.

Limited loan amount available

Requirement to pay interest

Risk of asset seizure in case of default

No flexibility in repayment terms

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the term for money received from family and friends to start a business?

startup cash

family funding

seed funding

friendship investment

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which source of finance does not require the business to repay the money?

Crowdfunding

Debt financing

Equity financing

Venture capital

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the term for money obtained from selling assets?

capital

proceeds

revenue

earnings

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