Business Funding Quiz

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

• Ownership

• Net profit

• Prosperity

• Gearing

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

• Venture capital

• Equity financing

• Debt financing

• Owner's capital

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 access to short-term loans

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

• They decrease significantly

• They increase dramatically

• They remain the same

• They are not affected

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

What is the meaning of debt financing?

• Khoản nợ tài chính

• Đầu tư tài chính

• Vốn cổ phần

• Huy động vốn vay

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

• Bankrupt

• Gearing

• Overdraft

• Prosperity

Shareholders receive periodic payments called…?

• Cổ phần

• Cổ tức

• Khoản nợ

• Tài sản

What is the definition of 'owner's capital' compared to 'equity capital'?

• Owner's capital refers to personal investment in a business, while equity capital refers to the total value of the company's assets belonging to the shareholders after subtracting debts.

• Owner's capital is the value of debts owed by a business, while equity capital refers to monthly revenue.

• Owner's capital is used only for paying business expenses, while equity capital is used for buying inventory.

• Owner's capital is the interest earned on savings, while equity capital is the company's net profit.

What are the 2 main ways a company can raise capital?

• Lending and borrowing

• Merging with another company or issuing bonds

• Reducing expenses and increasing sales

• Use share capital or loan capital