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WorksheetsSources of financing
Total questions: 6
Worksheet time: 3mins
There are varieties of short term sources of funds available to a company. Which of the followings are short term sources of financing? *can answer more than one
Trade Credit
Short term loans
Bonds
Preferred stock
This type of financing is normally needed because of uneven flow of cash into the business and the seasonal pattern of business. In most cases, it is used to finance all types of inventory, accounts receivables etc. At times, only specific one-time orders of business are financed. This refers to _______.
short term financing
long term financing
taxes
interest expenses
Short term finance refers to financing needs for a small period normally _____.
less than a year
more than a year
Which of the following is true about bonds?
Bond is an equity instrument
Interest is the return for bonds
Return for bonds are not guaranteed
Bond holders has voting right in the company
Which of the following is true about stocks?
Stocks is a debt instrument
Stockholders get return in the form of interest
Stocks provide a guaranteed return
Stockholders has a voting right in the company
Which of the followings are sources of long-term financing? *can answer more than one
Commercial paper
Bonds
Preferred stocks
Common stocks
