Practice Examples Of Finance In Business (2.7) - Understanding Finance
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Examples of Finance in Business

Practice - Examples of Finance in Business

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is owned capital?

💡 Hint: Think about the personal investments made by entrepreneurs.

Question 2 Easy

Provide an example of borrowed capital.

💡 Hint: Consider loans that must be repaid.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

Which of the following is an example of owned capital?

Bank Loans
Personal Savings
Issued Shares

💡 Hint: Think about who provides the funds directly.

Question 2

True or False: Short-term finance is required for more than five years.

True
False

💡 Hint: Consider how long businesses generally need such funds.

3 more questions available

Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

A new tech startup needs $500,000 to develop its first product. Discuss the advantages and disadvantages of funding this entirely through owned capital vs. a mix of owned and borrowed capital.

💡 Hint: Evaluate risks versus benefits in decision-making.

Challenge 2 Hard

A seasonal store anticipates high demand for the holidays. Identify the financial strategy that might be employed and discuss its relevance.

💡 Hint: Focus on immediate needs and seasonal sales patterns.

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Reference links

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