Financial Management and Capital Sourcing Quiz
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Questions and Answers

What are some traditional areas for which sourcing money may be done?

  • Investing in stocks and bonds
  • Expanding the employee benefits program
  • Acquiring new machinery and constructing new buildings or depots (correct)
  • Purchasing luxury items for the organization

    • In what circumstances do many organizations need to look for short term capital?

  • During periods of economic boom for expansion projects
  • In times of tight liquidity to provide a cash flow cushion (correct)
  • When there is excess cash flow for investment opportunities
  • When interest rates are at their lowest

    • What are some sources of capital for the development of new products?

  • Venture capital and angel investors
  • Crowdfunding and peer-to-peer lending
  • Government grants and subsidies
  • Internally financed developments and external capital for machinery acquisition (correct)

    • What does the chapter primarily focus on in terms of raising new capital?

    <p>Various forms of 'shares' and retained earnings</p> Signup and view all the answers

    Why do organizations have to look for short term capital in the way of overdraft or loans?

    <p>To address tight liquidity and provide a cash flow cushion</p> Signup and view all the answers

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