Business Finance 12 Flashcards
It is very expensive source of financing and should be avoided because of the high interest rate.
Informal lending “5-6
It is a source of funds which you need to create a good relationship by paying obligation on time and avail of credit term.
Supplier Credit
Which is the income earned on a bond?
Interest
This refer to the issuance of new shares of stock and retained earnings plowed back into the operation of the company.
Equity Financing
Mr. Toga has a savings of Php 500,000. She bought equity on Deep Loms. Co., which make him a part owner of the business. What investment type was presented ?
Stocks
This financing creates a contractual obligation for the borrower to pay the interest and the principal.
Bank
It is a financial organization owned and controlled by its member, who can borrow at low interest.
Credit Cooperative
It is a profit paid out to shareholder, but it can also be re-invested back into the company for growth purposes.
Retained Earnings
Financial institution which performs deposit and lending function.
Bank
Ms. Keri Koto, is the breadwinner of their family. Her priority is to provide for them and secure their future even
if an unforeseen situation happens. What kind of investment would ypu suggest to Ms. Keri Koto?
Insurance
Which of the following is not an example of a deposit investment?
Current
The person that manages a person’s mutual fund
Broker
These payments are needed to maintain an insurance account.
Premium
It is a source of fund which you need to be a member first before you can borrow money at a very low interest rate.
Credit Cooperative
What do you call an owner of a company’s stocks ?
Stockholder
