Sources of Business Finance Quiz

What are the advantages of using owner's funds for a company like Apple?

How does borrowing funds impact Apple's financial stability?

Why might Apple choose to use a combination of owner's funds and borrowed funds?

Owner's fund does not refer to the funds invested by the company owners for its development.

• True

• False

Examples of owner's fund include equity and preference share capitals and retained earnings.

• True

• False

Borrowed fund refers to funds raised through borrowing and loans from financial institutions or banks.

• True

• False

Borrowed funds need not be repaid with an interest rate.

• True

• False

Owner's fund remains permanently invested, whereas borrowed funds is not a permanent source of investment.

• True

• False

This refers the funds invested by the company owners for its development, e.g., equity and preference share capitals and retained earnings.

• Owner's Fund

• Borrowed Fund

• Both (A) and (B)

• None of the above

This refers to funds raised through borrowing and loans from financial institutions or banks and must be repaid with an interest rate.

• Owner's Fund

• Borrowed Fund

• Both (A) and (B)

• None of the above