BBA Finance Sources of Business Finance — practice questions
22 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice BBA Finance Sources of Business Finance in the app →Funds needed to buy land, buildings, plant and machinery are the firm's:Funds used to hold stock, bills receivable and to pay wages and rent are the firm's:A trading concern usually needs how much fixed capital compared with a manufacturing concern?A firm selling on credit with a slow turnover needs more:Sources that meet needs for a period exceeding five years are:Funds required for more than one year but less than five years come from:Trade credit, bank loans and commercial paper mainly provide funds for:Short-term financing is most common for financing:Seasonal businesses that build stock before the selling season typically need:Funds provided by the owners of an enterprise, including reinvested profits, are:Which pair are the two important sources of owner's funds?Loans from banks, debentures, public deposits and trade credit together form:A burden of borrowed funds is that interest must be paid even when:Collecting receivables faster, selling surplus stock and ploughing back profit are examples of:Suppliers, lenders and investors outside the firm are:A limitation of internal sources of funds is that they:Profits kept back in the business instead of paid as dividend are:Which is a merit of retained earnings?Excessive ploughing back of profits may cause dissatisfaction because shareholders get:Credit extended by one trader to another for buying goods is:In the buyer's records, trade credit appears as sundry creditors or:Trade credit is granted to customers who have reasonable financial standing and: