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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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