Equity Capital and Sources: Retained Earnings, Advanced Payments, and Sale of Stocks
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Questions and Answers

What are some examples of equity capital sources mentioned in the text?

  • Banks and merchant creditors
  • Sale of stocks and retained earnings (correct)
  • Dividends and salary payments
  • Accounts payable and short term loans
  • Which type of capital is sourced from outside investors?

  • Medium-term capital
  • Short-term capital
  • Long-term capital
  • Creditor/s' Capital (correct)
  • What is a common source of Creditor/s' Capital mentioned in the text?

  • Investor/s' Personal Resources
  • Sale of Stocks
  • Banks (correct)
  • Retained Earnings
  • How can Accounts Receivables be used to increase equity capital?

    <p>By using them as collaterals or rediscounting</p> Signup and view all the answers

    Which capital type may involve post-dated checks as collateral according to the text?

    <p>Short-term capital</p> Signup and view all the answers

    What type of capital may include advanced payments from customers?

    <p>Equity Capital</p> Signup and view all the answers

    Which type of capital source restricts its activities to offering capital based on collaterals like personal properties?

    <p>Pawnshops</p> Signup and view all the answers

    Which type of organization usually charges lower interest rates compared to other capital sources?

    <p>Private Voluntary Organizations (PVOs)</p> Signup and view all the answers

    Which type of capital source focuses on bringing individuals to sources of capital with mortgage requirements usually in the form of real estate or vehicles?

    <p>Mortgage Bankers</p> Signup and view all the answers

    What type of organization usually deals with secured loans to individuals rejected by banks but at higher interest rates?

    <p>Finance Companies</p> Signup and view all the answers

    Which type of entity acts as an intermediary agent between government agencies and individual borrowers, charging lower interest rates?

    <p>Private Voluntary Organizations (PVOs)</p> Signup and view all the answers

    Which exclusive organizations entitle members to obtain loans for capitalization requirements?

    <p>Credit Cooperatives</p> Signup and view all the answers

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