COB2 quiz nhóm 4

Why is funding considered essential for a company’s survival and growth?

• A. It helps firms secure resources and create a competitive advantage

• B. It eliminates the need for competition

• C. It prevents companies from expanding globally

• D. It reduces the importance of strategy

What are the main sources of funding mentioned in the presentation?

• A. Equity capital, retained earnings, and government subsidies

• B. Debt capital, retained earnings and equity capital

• C. Bank loans, venture capital, and retained earnings

• D. Equity capital, debt capital, and personal savings

Which of the following is NOT an advantage of equity capital for a company?

• A. It provides long-term funding without repayment obligations

• B. It avoids interest costs

• C. It ensures that founders keep full control of the company

• D. It may bring valuable expertise from investors

What is the main disadvantage for founders when a company issues more shares to raise equity capital?

• A. The company’s credibility decreases in the market

• B. The original owners’ control becomes diluted

• C. Dividends are guaranteed to shareholders every year

• D. The company cannot raise money in the future

Which of the following best defines retained earnings?

• A. The profits distributed to shareholders as dividends

• B. The profits kept by the company after paying dividends

• C. The funds borrowed from banks to finance projects

• D. The money raised by issuing new shares to investors

What is one disadvantage of relying too much on retained earnings?

• A. It increases the company’s debt burden

• B. It dilutes ownership of original shareholders

• C. It may disappoint shareholders who expect dividends

• D. It requires paying high interest costs

Which of the following is NOT a typical use of retained earnings?

• A. Funding new projects such as factories or product development

• B. Entering joint ventures or partnerships

• C. Paying interest on bank loans

• D. Expanding into new markets without borrowing money

What is the main limitation of retained earnings as a funding source?

• A. They require repayment with high interest

• B. They depend on the company’s profitability and may be insufficient for large projects

• C. They dilute ownership by adding new shareholders

• D. They reduce the company’s financial stability

 Which of the following is an advantage of using bank loans as a funding source?

• A. Founders keep full ownership without giving shares away

• B. The company never has to repay the loan

• C. Interest rates always remain fixed

• D. No documents are required to apply

What is the main risk of relying on bank loans for business funding?

• A. Shareholders’ ownership gets diluted

• B. The loan must be repaid even if the business is not profitable

• C. Retained earnings will decrease in the future

• D. The company cannot use the loan for expansion