Identify sources of capital

Which of the following is a self-funded source of capital?

• Bank loan

• ) Venture capital

• Personal savings

• Corporate bond

Which source of capital involves raising small amounts of money from a large number of people, typically through online platforms

• Trade credit

• Crowdfunding

• Leasing

• Public offering

What is a key advantage of obtaining capital from family and friends?

• Requires a high credit score

• Often has flexible repayment terms

• ) Always involves legal contracts

• Involves high interest rates

Venture capital is typically provided to:

• Large corporations with stable revenue

• Early-stage startups with high growth potential

• Government agencies

Which capital source requires repayment with interest?

• Grants and competitions

• Corporate bonds

• Public offering

• Personal savings

What is a key disadvantage of bank loans?

• They provide large funding amounts

• They have flexible repayment terms

• They require collateral and regular repayments

• They do not need to be repaid

Grants and competitions are attractive sources of capital because:

• They do not need to be repaid

• They require interest payments

• ) They are only available for large corporations

• They are a form of crowdfunding

Trade credit is a form of financing that allows a business to:

• Receive goods or services and pay for them later

• Get funding from family members

• ) Sell shares to the public

• Lease expensive equipment

Leasing helps businesses by:

• Allowing them to buy equipment with one lump sum payment

• Reducing upfront costs by renting equipment instead of buying

• Providing a direct investment from venture capitalists

• Increasing cash flow without monthly payments

A public offering allows a company to raise funds by:

• Selling shares to the public in the stock market

• Taking loans from a bank

• Borrowing money from investors

• Using personal savings