Podcast
Questions and Answers
What is the term used for the money required to run a business?
What is the term used for the money required to run a business?
- Investment
- Capital (correct)
- Profit
- Revenue
Why is finance considered the lifeblood of a business?
Why is finance considered the lifeblood of a business?
- To finance expansion needs
- To purchase fixed assets
- To ensure smooth day-to-day operations (correct)
- To maximize profits
What is the term for the funds required by a business to purchase land, building, and machinery?
What is the term for the funds required by a business to purchase land, building, and machinery?
- Working capital
- Venture capital
- Fixed Capital Requirements (correct)
- Seed capital
What is the term used for the sum of money invested by an entrepreneur in a business?
What is the term used for the sum of money invested by an entrepreneur in a business?
Which activity is undertaken with a motive of serving the society and profit earning in the long run?
Which activity is undertaken with a motive of serving the society and profit earning in the long run?
What is the term used for the funds required by a business to purchase furniture, fixtures, etc?
What is the term used for the funds required by a business to purchase furniture, fixtures, etc?
What is the definition of working capital requirements?
What is the definition of working capital requirements?
Which of the following is an example of short-term funds?
Which of the following is an example of short-term funds?
What are the sources of long-term funds?
What are the sources of long-term funds?
Which source of funds includes profits that are reinvested into the business?
Which source of funds includes profits that are reinvested into the business?
What are external sources of financing?
What are external sources of financing?
What does retained earnings represent as a source of finance?
What does retained earnings represent as a source of finance?
What is the limitation of retained earnings as a source of finance?
What is the limitation of retained earnings as a source of finance?
What is the basis for classifying sources of funds as short term, medium term, or long term?
What is the basis for classifying sources of funds as short term, medium term, or long term?
Which is an example of an external source of financing that fulfills large money requirements?
Which is an example of an external source of financing that fulfills large money requirements?
What is one advantage of internal sources of funds compared to external sources?
What is one advantage of internal sources of funds compared to external sources?
