Sources of Capital
Presentation
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Business
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3rd Grade
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Practice Problem
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Hard
Rose Thomas
Used 2K+ times
FREE Resource
8 Slides • 5 Questions
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Sources of Capital
Business Basics
3B
November 2, 2020
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Debt Capital
Like individuals, companies can and borrow money. This can be done privately through bank loans, or it can be done publicly through a debt issue. These debt issues are known as corporate bonds, which allows a wide number of investors to become lenders (or creditors) to the company.
The main consideration for borrowing money is that the principal and interest must be paid to the lenders
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Partnership
A partnership is a form of business where two or more people share ownership, as well as the responsibility for managing the company and the income or losses the business generates.
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Multiple Choice
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Multiple Choice
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Multiple Choice
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Multiple Choice
The owner of Jack’s Furniture Workshop, a one man company, manages to get a massive order to fit out a secondary school in Michigan. He puts $10.000 of his savings into the company so he can buy the needed raw materials, fully expecting to earn it back quickly.
This is an example of:
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Multiple Choice
The Board of Ching Shu, a debt collection firm, decides to postpone the payout of shareholder dividends to finance company expansion. The funds are used to open new offices, increasing their circle of activity. The shareholders think this is a great move as they think this will increase their stock value over time.
This is an example of:
Sources of Capital
Business Basics
3B
November 2, 2020
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