Financial Management and Capital Sourcing Quiz

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

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 (D)</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 (B)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Browser