Understanding Acquisition of Capital

Understanding Acquisition of Capital

Professional Development

20 Qs

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Understanding Acquisition of Capital

Understanding Acquisition of Capital

Assessment

Quiz

Computers

Professional Development

Practice Problem

Medium

Created by

Khunheng Ten

Used 2+ times

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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary purpose of capital for a corporation?

To pay taxes

To start up, operate, and expand its business

To hire employees

To purchase raw materials

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the process of acquiring capital known as?

Investing

Financing

Trading

Borrowing

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following are the two basic types of financing used by corporations?

Stock financing and bond financing

Equity financing and debt financing

Short-term financing and long-term financing

Internal financing and external financing

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does equity financing refer to?

Borrowing funds from external sources

Investing funds by owners of the corporation

Selling products to customers

Leasing equipment from vendors

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does debt financing involve?

Borrowing funds from sources outside the corporation

Investing in real estate

Issuing new shares of stock

Selling corporate assets

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which type of transaction exemplifies equity financing?

The sale of corporate bonds

The sale of corporate stock

Borrowing from a bank

Leasing equipment

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What do shares of stock represent?

Units of debt

Units of ownership

Units of profit

Units of liability

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