Business Introduction Exam 2021-2022

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What is the situation where the company does not have sufficient funds to start a business?

Undercapitalization (correct)

Capital loss

Inadequate cost control

Poor control over cash flow

Which financial function is not important to company performance?

Planning

Pricing (correct)

Auditing

Budgeting

What is the difference between equity financing and debt financing?

All answers are correct

Debt financing raises funds by selling company shares

Equity financing raises funds through sells of the company's equity (correct)

Equity financing collected by funds through borrowing from outside parties

What is the activity of selling the company receivables to get cash?

Factoring Accounts Receivable Signup and view all the answers

1

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What is the situation where the company does not have sufficient funds to start a business?

Undercapitalization Signup and view all the answers

Which financial function is not important to company performance?

Pricing Signup and view all the answers

What is the difference between equity financing and debt financing?

Equity financing raises funds through sells of the company's equity Signup and view all the answers

What is the activity of selling the company receivables to get cash?

Factoring Accounts Receivable Signup and view all the answers

What type of budget highlights a firm’s spending plans for major asset purchases that often require large sums of money?

Capital Budget Signup and view all the answers

Business Introduction Exam 2021-2022

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Questions and Answers

What is the situation where the company does not have sufficient funds to start a business?

Which financial function is not important to company performance?

What is the difference between equity financing and debt financing?

What is the activity of selling the company receivables to get cash?

1

What is the situation where the company does not have sufficient funds to start a business?

Which financial function is not important to company performance?

What is the difference between equity financing and debt financing?

What is the activity of selling the company receivables to get cash?

What type of budget highlights a firm’s spending plans for major asset purchases that often require large sums of money?

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