MANAGEMENT

BUISENESS MANAGEMENT

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is not a source of external financing for a public limited company?
A
Ovedraft
B
Debentures
C
Retained profit
D
Share capital
Explanation: 

Detailed explanation-1: -The sources for external finances that are available are export credit, world bank group, foreign direct investment. The WTO funds are not a source of external finances.

Detailed explanation-2: -Internal sources of finance refer to money that comes from within a business. There are several internal methods a business can use, including owners capital, retained profit and selling assets . Owners capital refers to money invested by the owner of a business. This often comes from their personal savings.

Detailed explanation-3: -Answer and Explanation: Correct Answer: Option d. Treasury stock.

Detailed explanation-4: -External sources of finance are equity capital, preferred stock, debentures, term loans, venture capital, leasing, hire purchase, trade credit, bank overdraft, factoring etc.

Detailed explanation-5: -The main sources of funding are retained earnings, debt capital, and equity capital. Companies use retained earnings from business operations to expand or distribute dividends to their shareholders. Businesses raise funds by borrowing debt privately from a bank or by going public (issuing debt securities).

There is 1 question to complete.