Sources of Funds For Businesses - SS1 Economics Past Questions and Answers - page 1
1
Which of the following is not a source of funds for businesses?
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A
Equity financing
B
Debt financing
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C
Government financing
D
Asset financing
Â
2
What is equity financing?
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A
Borrowing money from lenders
B
Obtaining funding from government grants
Â
C
Raising funds by selling shares of ownership in the company to investors
D
Reinvesting profits back into the business
3
Which of the following is an example of debt financing?
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A
Crowdfunding
B
Retained earnings
Â
C
Bank loan
D
Government grant
Â
4
What is government financing?
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A
Raising funds by selling shares of ownership in the company to investors
B
Borrowing money from lenders
C
Obtaining funding from government grants, loans, or tax credits
Â
D
Reinvesting profits back into the business
5
What is crowdfunding?
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A
Raising funds by selling shares of ownership in the company to investors
B
Borrowing money from lenders
C
Obtaining funding from government grants, loans, or tax credits
D
Raising funds from a large number of people through online platforms
Â
7
What is the main difference between equity and debt financing?
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