(A) loans
(B) dividends
(C) rights issue
(D) retained earnings
The answer is: (C) rights issue
Category: Sources of Finance MCQs
Sources of Finance MCQs quiz test questions with answers. Short-term and long-term finance multiple choice questions.
The issuance of bonds by a corporation is a way of
(A) borrowing money
(B) investment
(C) saving money
(D) avoiding agency problem
The answer is: (A) borrowing money
Which business type is best suited to raising large amounts of capital?
(A) sole proprietorship
(B) partnership
(C) corporation
(D) limited liability company
The answer is: (C) corporation
Short-term finance deals with
(A) the timing of cash flows
(B) acquiring and selling fixed assets
(C) financing long-term projects
(D) capital budgeting
The answer is: (A) the timing of cash flows
Which of the following is long-term financing?
(A) overdraft
(B) issuing bonds
(C) trade credit
(D) none of these
The answer is: (B) issuing bonds
When a private company offers shares to the public for the first time, it is known as
(A) a rights issue
(B) capital budgeting decision
(C) initial public offering
(D) underwriting
The answer is: (C) initial public offering
Which financial institution helps companies raise capital by underwriting and distributing new securities?
(A) Commercial bank
(B) Investment bank
(C) Credit union
(D) Hedge fund
The answer is: (B) Investment bank
The process of assessing the risk and prices of securities and then finding investors to buy them is known as
(A) broking
(B) underwriting
(C) investment
(D) term assurance
The answer is: (B) underwriting