Quiz on Sources of Acquiring Resources

Which of the following is a form of external equity?

• Bootstrapping

• Initial Public Offering

• Barter

• Contract Labour

What is the purpose of crowdfunding?

• To outsource operations

• To establish a partnership

• To hire temporary staff

• To raise money from a large group of people

What does bootstrapping involve?

• Forming a joint venture

• Hiring contract workers

• Using only existing resources

• Using external loans

What is a joint venture?

• A type of debt financing

• A way to hire temporary staff

• A combination of two or more parties for profit

• A method of outsourcing

Which of the following is NOT a source of internal funding?

• Owner's personal equity

• Personal savings

• Family and friends

• Bank loans

What is the main advantage of borrowing from family and friends?

• No need for a business plan

• Higher interest rates

• Faster approval process

• Cheaper and more lenient repayment

What does outsourcing involve?

• Establishing a partnership

• Raising capital through stock sales

• Subcontracting operations to independent suppliers

• Hiring permanent employees

What is the purpose of leveraging?

• To use borrowed funds for investment

• To raise capital through debt

• To trade goods and services

• To reduce costs by hiring temporary staff

What is a characteristic of contract labour?

• Is only available for permanent positions

• Works for an indefinite period

• Can be temporary or part-time

• Always requires a full-time commitment

What is a common disadvantage of using venture capital?

• Faster access to funds

• Lower interest rates

• Loss of control over the business

• No repayment required