Customers not paying on time often leads to ___________ problems

TB p. 83--Raising Finance exercises A&B

Quiz
•
English
•
9th - 10th Grade
•
Medium
adam schulman
Used 1+ times
FREE Resource
18 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
equity
cashflow
asset
Answer explanation
Cash flow is the net cash and cash equivalents transferred in and out of a company. IF people don't pay their debts the company doesn't have cash for other things.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Our state-of-the art machinery is our major ________.
possession
asset
equity
Answer explanation
An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The______ rate on the loan was 12%.
fee
charge
interest
Answer explanation
interest is the price you pay to borrow money
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
They could not pay their debts and faced ___________.
bankruptcy
warranty
overpayment
Answer explanation
completely lacking in money
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Sorbat has gone into ______ with debts of about $20 million.
indemnity
investment
administration
Answer explanation
indemnity is a type of insurance compensation paid for loss or damages.
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The finance a company raises from issuing shares rather than taking out loans is known as ________ capital.
equity
dividend
stock
Answer explanation
equity capital is something that a company owns that is not tied to debt. This type of capital often involves investor money entering the company in exchange for shares.
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The _________ is the original amount of a loan not including any interest charged
instalment
principal
subsidy
Answer explanation
The principal refers to the borrowed initial sum. So, if you were to take out a start-up loan for $75,000 and pay off $25,000, you would have $50,000 of the principal left to repay. You would also still need to pay off any interest that you owe on the borrowed money.
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