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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

 

C

Government financing

D

Asset financing

 

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2

What is equity financing?

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A

Borrowing money from lenders

B

Obtaining funding from government grants

 

C

Raising funds by selling shares of ownership in the company to investors

D

Reinvesting profits back into the business

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3

Which of the following is an example of debt financing?

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A

Crowdfunding

B

Retained earnings

 

C

Bank loan

D

Government grant

 

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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

 

D

Reinvesting profits back into the business

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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

 

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6

What is retained earnings?

 

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7

What is the main difference between equity and debt financing?

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