ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which of the following is a reason why a new business start-up would need finance?
|
|
To fund expansion
|
|
|
To pay for replacement equipment
|
|
|
To carry out maintenance on a new piece of machinery
|
|
|
To buy equipment
|
Explanation:
Detailed explanation-1: -The sources of business finance are retained earnings, equity, term loans, debt, letter of credit, debentures, euro issue, working capital loans, and venture funding, etc. The above mentioned is the concept, that is elucidated in detail about ‘Fundamentals of Economics’ for the Commerce students.
Detailed explanation-2: -Personal investment. Most start-ups require some personal investment by the entrepreneur-either cash or personal assets used as collateral to secure financing. Friends and family. Debt financing. Outside equity financing. Grants and subsidies.
There is 1 question to complete.