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