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Questions and Answers
What is the term for the owner's own money, which fulfills a limited requirement of the enterprise?
What is the term for the owner's own money, which fulfills a limited requirement of the enterprise?
- Retained Profit
- Internal Source (correct)
- External Source
- Working Capital
Which type of capital is the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?
Which type of capital is the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?
- Retained Profit
- Fixed Capital (correct)
- Personal Savings of the Owner
- Working Capital
What is the term for the money required for the day-to-day operations of a business or enterprise?
What is the term for the money required for the day-to-day operations of a business or enterprise?
- Sale of Assets
- Working Capital (correct)
- External Source
- Fixed Capital
Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?
Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?
What may be used for fund, such as PF, insurance policy, investment, and building, by the owner?
What may be used for fund, such as PF, insurance policy, investment, and building, by the owner?
What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?
What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?
What factors do lenders consider when assessing a business's financial projections and ability to repay a loan?
What factors do lenders consider when assessing a business's financial projections and ability to repay a loan?
In case of a failed venture, what do lenders assess regarding collateral?
In case of a failed venture, what do lenders assess regarding collateral?
What do lenders consider when assessing business conditions?
What do lenders consider when assessing business conditions?
Why are lenders more likely to invest in a new business if there is a substantial financial commitment from the owner?
Why are lenders more likely to invest in a new business if there is a substantial financial commitment from the owner?
What can insufficient personal capital lead to in a business?
What can insufficient personal capital lead to in a business?
What are commercial loans divided into?
What are commercial loans divided into?
What does Venture Capital provide to companies?
What does Venture Capital provide to companies?
What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?
What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?
What is the term for the money required for the day-to-day operations of a business or enterprise?
What is the term for the money required for the day-to-day operations of a business or enterprise?
Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?
Which source of finance involves profit earned by an entrepreneur and may be used to finance the future needs of a firm?
What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?
What involves taking goods, machinery, or plant on credit basis for a particular time period by giving bank security to the supplier?
What can insufficient personal capital lead to in a business?
What can insufficient personal capital lead to in a business?
What do lenders assess when considering the ability of a new business to repay a loan?
What do lenders assess when considering the ability of a new business to repay a loan?
Which type of loan covers operational expenses like rent, insurance, advertising, inventory, or salaries?
Which type of loan covers operational expenses like rent, insurance, advertising, inventory, or salaries?
What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?
What is the term for the money invested in current assets like raw material, finished goods, machinery, equipment, and furniture?
What type of finance provides seed, start-up, and first-stage finance to companies with business potential but lack access to public securities markets or credit-oriented institutions?
What type of finance provides seed, start-up, and first-stage finance to companies with business potential but lack access to public securities markets or credit-oriented institutions?
What do lenders assess when determining if collateral will cover a loan?
What do lenders assess when determining if collateral will cover a loan?
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