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Questions and Answers
Which term refers to funds used by a business for daily operations and future growth?
Which term refers to funds used by a business for daily operations and future growth?
- Revenue
- Expenses
- Cash
- Capital (correct)
From which sources can a business's capital originate?
From which sources can a business's capital originate?
- Sales revenue alone
- Only from internal profits
- Loans exclusively
- Shares, debentures, or bonds (correct)
What is NOT considered a source of capital for a business?
What is NOT considered a source of capital for a business?
- Shares
- Goodwill (correct)
- Bonds
- Debentures
Which of the following is essential for a business's operational sustainability?
Which of the following is essential for a business's operational sustainability?
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What role does capital play in a business?
What role does capital play in a business?
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Study Notes
Capital
- Capital is essential for businesses to function and grow.
- Businesses obtain capital from owners or external sources.
- External sources of capital include shares, debentures, or bonds.
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Description
This quiz explores the concept of capital and its critical role in business operations and growth. It highlights how businesses acquire capital from owners and various external sources such as shares, debentures, and bonds.
