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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is equity capital?
💡 Hint: Think of ownership.
Question 2
Easy
What does debt capital involve?
💡 Hint: Consider loans or credits.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is equity capital?
- Funds from loans
- Long-term funds from owners
- Short-term funds for operations
💡 Hint: Think ownership.
Question 2
Is retained earnings an external source of finance?
- True
- False
💡 Hint: Think of where the profits go.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Assess a company's decision to favor equity financing over debt. Discuss the implications for ownership and financial risk.
💡 Hint: Consider the trade-offs of control and risk.
Question 2
Evaluate a scenario where a company has high retained earnings but chooses not to invest in new projects. What would be the consequences?
💡 Hint: Reflect on opportunity costs.
Challenge and get performance evaluation