Understanding Capital Income

What is capital income primarily used for in a business?

• To cover daily operational expenses

• To fund expansion and growth

• To purchase office supplies

• To pay employee salaries

Which of the following is NOT a typical source of a business loan?

• Online lenders

• Credit unions

• Personal savings

• Traditional banks

What is a key benefit of a commercial mortgage for a business?

• No need for collateral

• Spreading the cost of property over time

• Immediate ownership of property

• Instant profit generation

What do shares represent in a company?

• A loan to the company

• A form of debt

• Ownership in the company

• A temporary investment

How do debentures differ from shares?

• Debentures are a form of debt

• Debentures provide voting rights

• Debentures are traded on stock exchanges

• Debentures represent ownership