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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