BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Accrued expenses
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Ploughing back of profit
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Factoring
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Venture capital financing
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Detailed explanation-1: -This form of investing is provided to set up the initial operation and basic production. Early stage capital works by supporting the development of the product or service. The funds raised can also be used to market and commercially manufacture the product. The team may use the money for supporting sales as well.
Detailed explanation-2: -Short-term working capital needs are best served by short-term loan products such as lines of credit. Business lines of credit provide a maximum amount of borrowing for a set period (12 months) based on your business’s inventory and receivables.
Detailed explanation-3: -Debt and equity are the two major sources of financing. Government grants to finance certain aspects of a business may be an option. Also, incentives may be available to locate in certain communities or encourage activities in particular industries.
Detailed explanation-4: -Startup capital is the money raised by an entrepreneur to underwrite the costs of a venture until it begins to turn a profit. Venture capitalists, angel investors, and traditional banks are among the sources of startup capital.