FM2 Long Term Financing
Authored by Mohd Fauzi Abu Bakar
Business
University
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is long-term financing?
Financing with a term of less than one year
Financing with a term of more than one year
Financing obtained from family and friends
Financing provided by venture capitalists
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is NOT an example of long-term financing?
Bank loans
Trade credit
Bonds
Equity financing
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a characteristic of long-term debt financing?
No collateral
Short repayment period
Fixed repayment schedule
Low risk to lenders
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which entity typically provides long-term financing to corporations?
Commercial banks
Trade creditors
Suppliers
Customers
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the primary purpose of long-term financing?
To meet short-term cash needs
To finance day-to-day operations
To fund capital investments
To cover operating expenses
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following is a form of equity financing?
Bank loan
Corporate bonds
Preferred stock
Mortgage
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a disadvantage of long-term financing through issuing bonds?
Limited access to capital markets
Fixed interest payments
Decreased financial leverage
Potential bankruptcy risk
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