Podcast
Questions and Answers
What are some traditional areas for which sourcing money may be done?
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?
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?
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?
What does the chapter primarily focus on in terms of raising new capital?
Why do organizations have to look for short term capital in the way of overdraft or loans?
Why do organizations have to look for short term capital in the way of overdraft or loans?