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?

  • 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?

    <p>Factoring Accounts Receivable (B)</p> Signup and view all the answers

    1

    <p>1 (A)</p> Signup and view all the answers

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

    <p>Undercapitalization (B)</p> Signup and view all the answers

    Which financial function is not important to company performance?

    <p>Pricing (B)</p> Signup and view all the answers

    What is the difference between equity financing and debt financing?

    <p>Equity financing raises funds through sells of the company's equity (C)</p> Signup and view all the answers

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

    <p>Factoring Accounts Receivable (D)</p> 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?

    <p>Capital Budget (D)</p> Signup and view all the answers

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