Business Funding Quiz

What is the term for the relationship between equity capital invested in the business and long-term debt?

• Prosperity

• Ownership

• Gearing

• Net profit

Which source of equity finance is usually provided by venture firms interested in financing high-growth companies?

• Bank loan

• Venture capital

• Reinvested earnings

• Trade credit

What is the advantage of the unlisted securities market for companies looking to raise money from outside investors?

• Allows control of the company to be retained

• Requires listing on the Stock Exchange

• Reduces public ownership to less than 25%

• Provides faster and higher rate of return

In times of prosperity, what happens to the owner's earnings with a high gearing?

• They drop dramatically

• They are not affected

• They increase slightly

• They remain the same

What is the term for a loan that is to be paid back over a period of time between five and ten years?

• Short-term loan

• Medium-term loan

• Long-term loan

• Instant loan

Which type of loan is used for purchasing land, buildings, machinery, and equipment?

• Long-term loan

• Student loan

• Personal loan

• Business loan

What is the main purpose of the Stock Exchange for companies?

• To secure debt over fixed assets

• To provide short-term loans

• To reduce control of the original owners

• To raise capital by issuing fresh shares

Which source of equity finance is available only to large companies?

• Unlisted securities market

• Venture capital

• Stock Exchange

• Owner's capital

What is the meaning of debt financing?

• Reducing expenses and increasing sales

• Merging with another company or issuing bonds

• Lending and borrowing

• Use share capital or loan capital

Which of the following words means 'thấu chi ngân hàng'?

• Prosperity

• Overdraft

• Bankrupt

• Gearing