ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements about overdrafts is not true?
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Short term source of finance
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It’s really a small, short term loan
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It’s flexible, in that it can be used whenever it is needed
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Cheap-the interest rate is usually lower than that of a long-term bank loan
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Explanation:
Detailed explanation-1: -Fixed assets are not a source of finance for a company.
Detailed explanation-2: -Best Common Sources of Financing Your Business or Startup are: Personal Investment or Personal Savings. Venture Capital. Business Angels.
Detailed explanation-3: -Short-term refers to funds that generally have to be paid back within a year. Medium-term financing usually requires funds to be paid back between one and five years; whilst long-term finance is generally anything that is paid back after five or more years.
There is 1 question to complete.