Equity Capital Sources Quiz
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Questions and Answers

Which type of capital source usually restricts their services to authorized activities and does not provide banking services?

  • Insurance Companies
  • Individual Money Lenders
  • Pawnshops (correct)
  • Finance Companies
  • Which type of organization, acting as intermediary agents, receives an allocation of the budget and re-lends capital to individual borrowers or small groups from government agencies?

  • Credit Cooperatives
  • Private Voluntary Organizations (correct)
  • Savings and Loan Associations
  • Credit Unions
  • Which capital source helps finance projects by connecting individuals to sources of capital with mortgage requirements, typically in the form of real estate and motorized vehicles?

  • Insurance Companies
  • Pawnshops
  • Mortgage Bankers (correct)
  • Finance Companies
  • Which type of organization usually provides loans based on installment payments from sources and consignment from sources?

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

    Which category of lenders is known for lending capital as friends of your business without being licensed, usually requiring collateral from borrowers?

    <p>Individual Money Lenders</p> Signup and view all the answers

    Which type of organizations offer numerous financing and leasing services but mostly deal with secured loans at relatively higher interest rates for those rejected by banks?

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

    Which source of equity capital involves using undeclared profits rolled-over from a company's past year's operations?

    <p>Investor/s' Personal Resources</p> Signup and view all the answers

    Which type of capital may have a maturity of less than one year?

    <p>Short-term Creditor/s' Capital</p> Signup and view all the answers

    What can accounts receivables be converted into to serve as additional equity capital?

    <p>Common Stocks</p> Signup and view all the answers

    Which external source is mentioned as one of the most common sources of creditor/s' capital?

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

    What is one way in which advanced payments from customers can be utilized in a business?

    <p>To fund day-to-day operations</p> Signup and view all the answers

    Which type of creditor/s' capital has a maturity exceeding five years?

    <p>Long-Term Creditor/s' Capital</p> Signup and view all the answers

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