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 (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

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