Sources of Finance

ADRs are issued in

• Canada
• China
• India
• USA

If the credit is extended by one trader to another for the purchase of goods and services it is called

• Trade Credit
• Loan
• Debt
• Asset

What are the important sources from where the owner‘s funds can be obtained

• Preference Shares
• Equity Shares
• Retained Earnings
• Both b and c

A business can generate funds internally by

• Accelerating collection of receivables
• ploughing back its profits
• Disposing of surplus inventories
• All of the above

Where the funds are required for a period of more than one year but less than five years, which sources are used

• Long term sources
• Medium term sources
• Short term sources
• Very short-term sources

A fixed rate of interest is paid by the borrowers on such funds……

• Owner‘s Funds
• Borrowed Funds
• Both a and b

Which source of finance involves borrowing money with a promise to repay with interest?

• Equity
• Debentures
• Retained Profit
• Venture Capital

Venture capital is typically provided to:

• Established businesses with stable profits
• New or growing businesses with high growth potential
• Government projects
• Non-profit organizations

What type of finance is typically used for day-to-day operations of a business?

• Long-term loan
• Working capital
• Equity shares
• Venture capital

Which of the following is a disadvantage of issuing shares as a source of finance?

• Interest payments
• Dilution of ownership
• High loan repayments
• Short-term repayment