ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A short-term source of finance from a bank that usually is only used in an emergency/when needed
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Overdraft
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Loan
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Share capital
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Credit card
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Explanation:
Detailed explanation-1: -Meaning. • Short term finance refers to financing needs for a small period normally less than a year. In businesses, it is also known as working capital financing. This type of financing is normally needed because of uneven flow of cash into the business, the seasonal pattern of business, etc.
Detailed explanation-2: -Bank loans can be short term or long term, depending on the purpose of the loan. Bank loans are frequently used to finance start-up capital and also for larger, long-term purchases.
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