Finance Durations Quiz

What is short term finance?

Borrowing money for less than a year

What is medium term finance?

Borrowing money for one to five years

What is long term finance?

Borrowing money for over five years

What is equity capital?

Share issue Signup and view all the answers

What are the reasons businesses need finance?

To manage cash flow Signup and view all the answers

What are the different sources of finance?

Trade credit Signup and view all the answers

What is the role of the finance department?

Financial decision making Signup and view all the answers

What is the purpose of working capital?

To pay for day-to-day business activities Signup and view all the answers

What is an example of long-term source of finance?

Bank loans Signup and view all the answers

What is the purpose of micro finance?

To provide investment for entrepreneurs who can't secure finance from banks Signup and view all the answers

What is the main idea behind crowdfunding?

Encouraging many people to invest small amounts into a project Signup and view all the answers

What is the purpose of matching the source of finance to the use?

To ensure that the finance is used for the intended purpose and time period Signup and view all the answers

What does gearing measure in the context of business finance?

The proportion of total capital raised from long-term loans Signup and view all the answers

What is the primary purpose of issuing shares for a limited company?

To raise capital from new and existing shareholders Signup and view all the answers

What is the main function of trade credit in business finance?

To buy something and not pay for it immediately Signup and view all the answers

Finance Durations Quiz

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