Sources of Corporate Finance Quiz
5 Questions
3 Views

Sources of Corporate Finance Quiz

Created by
@BriskOpal

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the two forms of owned capital mentioned in the text?

  • Public deposits and bonds
  • Equity shares and retained earnings (correct)
  • Debentures and preference shares
  • Trade credit and ADR / GDR

    • Which of the following is considered an external source of finance?

  • Equity shares
  • Trade credit
  • Retained earnings
  • Debentures (correct)

    • What is the difference between external and internal sources of finance?

  • External sources are always more reliable than internal sources.
  • External sources involve raising capital from outsiders, while internal sources involve obtaining capital from within the organization. (correct)
  • External sources involve trade credit, while internal sources involve equity shares.
  • External sources are related to retained earnings, while internal sources are related to debentures.

    • Which type of capital is raised by the company with the help of owners (shareholders)?

    <p>Owned capital</p> Signup and view all the answers

    What form does owned capital take when shareholders purchase shares of the company and supply necessary capital?

    <p>Equity shares</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser