Sources Of Finance

Question 1

savings

Answer 1

the money kept at a bank

Question 2

seed capital

Answer 2

money used to start a business

Question 3

profit

Answer 3

money earned in trade or business after paying costs

Question 4

sale of assets

Answer 4

transfer of assets from one business to another

Question 5

bank loan

Answer 5

money borrowed from bank

Question 6

interest

Answer 6

money charged by bank or organization for borrowing money

Question 7

investors

Answer 7

someone putting money into organization to make profit / get an advantage

Question 8

venture capital

Answer 8

money invested or available for investment

Question 9

corporate bond / debenture

Answer 9

type of loan often used by companies to raise money, paid back over long period of time in fixed interest rates

Question 10

redeem

Answer 10

carry out promise / pay back a debt

Question 11

maturity

Answer 11

time when insurance agreement or investment ready to be paid

Question 12

working capital

Answer 12

money belonging to company with immediate availability for use

Question 13

credit terms

Answer 13

arrangements made for giving credit

Question 14

share / stock

Answer 14

part of ownership of company that can be bought by public

Question 15

to issue shares / to share issue

Answer 15

company makes new shares available

Question 16

shareholders / stockholders

Answer 16

owns shares / part of a company

receives part of profit, right to vote

Question 17

ordinary shares / common stock

Answer 17

owner has right to vote & receive part of company’s profit

Question 18

preference shares / preferred stock

Answer 18

group of shares - receive dividend before they are paid to common stock owners (/not paid at all)

Question 19

to go public / to float a company

Answer 19

legal process: company goes from being held privately to publicly hold

Question 20

initial public offering

Answer 20

first sale of shares to the public

Question 21

to be listed on the stock exchanging

Answer 21

shares on list of stock that are officially binding on a stock exchange

Question 22

debt factoring

Answer 22

selling unpaid custom invoices (accounts receivable) to debt factoring primary

Question 23

crowdfunding

Answer 23

get a large number of people to each give a small amount of money in order to provide financing for a business project