Sources of Finance

Why is finance important to businesses?

• It helps businesses manage their money and grow.

• It is only used for paying taxes.

• It is not necessary for business operations.

• It only helps in hiring employees.

Which of the following is a source of finance for businesses?

• Bank loans

• Watching TV

• Playing sports

• Reading novels

What is one advantage of knowing different sources of finance for a business?

• It allows businesses to choose the best way to fund their needs.

• It makes businesses less organized.

• It increases the cost of running a business.

• It reduces the number of customers.

Which of the following is a disadvantage of some sources of finance?

• They may require repayment with interest.

• They always provide free money.

• They guarantee business success.

• They never need to be paid back.

Which of the following is NOT listed as a topic under "Management of Finance"?

• Sources of Finance

• Cash Budgets and Budgeting

• Marketing Strategies

• Break-even Analysis

Which topic under "Management of Finance" would most likely involve analyzing when a business covers its costs and starts making a profit?

• Technology

• Break-even Analysis

• Income Statements

• Sources of Finance

If a student wants to learn about how businesses plan their expected cash inflows and outflows, which topic should they study?

• Cash Budgets and Budgeting

• Technology

• Income Statements

• Sources of Finance

Suppose a business wants to understand its financial performance over a period of time. Which topic would be most relevant?

• Break-even Analysis

• Income Statements

• Technology

• Sources of Finance

Which of the following is NOT mentioned as a financial task businesses must perform?

• Source finance

• Make financial decisions

• Prepare and interpret financial information

• Develop new products

Which of the following activities involves analyzing and understanding financial data in a business?

• Preparing and interpreting financial information

• Hiring new staff

• Designing advertisements

• Organizing company events