ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which is the most appropriate financial objective for a business which has borrowed a loan and sells on credit?
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Making a return for the owners of the enterprise
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Ensuring sufficient cash resources
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Achieving long term financing
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Profit
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Explanation:
Detailed explanation-1: -Source of Borrowed Funds The sources of borrowed funds include finance that is obtained from commercial banks, financial institutions, finance that is raised from debenture holders and public deposits.
Detailed explanation-2: -A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans.
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