5 Questions
What are some traditional areas for which sourcing money may be done?
Acquiring new machinery and constructing new buildings or depots
In what circumstances do many organizations need to look for short term capital?
In times of tight liquidity to provide a cash flow cushion
What are some sources of capital for the development of new products?
Internally financed developments and external capital for machinery acquisition
What does the chapter primarily focus on in terms of raising new capital?
Various forms of 'shares' and retained earnings
Why do organizations have to look for short term capital in the way of overdraft or loans?
To address tight liquidity and provide a cash flow cushion
Test your knowledge of financial management and capital sourcing with this quiz. Explore the various reasons for sourcing money, including capital asset acquisition and product development. Sharpen your understanding of internal and external financing for business needs.
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