C-02 — Sources of Finance

Finance means —

To purchase a fixed asset, fund should usually be collected through —

To meet daily needs such as raw materials purchase, the suitable source is —

Selecting sources of fund is an important decision of —

Different sources of finance differ mainly in their —

An institution selects a mixture of sources that gives —

The main objective of investment is —

Gross profit equals total sales income minus —

Net profit equals gross profit minus —

To maximize profit of the business, cost of capital should be —

Business finance means —

In the textbook example, Mr. Rahman is owner of a —

For machine purchase related fixed investment, a business person usually first prefers —

Own savings can be used in business for —

Janata Bank and Rupali Bank are examples of —

Building and factory used as collateral fall under —

Raw materials and saleable products are examples of —

Reinvesting earned profit without withdrawing it from the business is —

During cash crisis in operation, the suitable sources are —

Renting heavy machinery instead of purchasing protects the business from —

Big organizations like Beximco Pharmaceuticals and Square Textiles arrange fund mainly by —

In every organization the two separate sources of finance are —

Fund provided by the owner is called —

Fund provided by the creditor is called —

Most organizations utilize —

Internal sources of finance come from —

Internal sources of finance are divided into —

Based on ownership, organizations are classified into —

In sole proprietorship, internal source includes —

Factors of production measurable in money include —

Profit of the business equals earnings minus —

Compared to loan financing, internal financing has —

Profit invested in business instead of being distributed among shareholders is called —

Undistributed profit kept aside for future business expansion is called —

Dividend equalization fund is mainly used to —

The goodwill of a company is implied by —

The portion of profit which a commercial bank must compulsorily preserve following the central bank's directive is —

Statutory reserve is mandated by the —

Consider the following profit-oriented internal sources:

A popular example of external source of finance is —

Which of the following is NOT a feature of bank loan?

Repayment of bank loan is compulsory even when —

The main tax advantage of loan financing is that —

In small businesses, external sources may act as the main source because —

The main problem of external fund is —

External sources are divided, based on term, into —

External sources include —

Short term means duration of —

The cost of capital from short term sources can be —

Interest-free short term sources include —

The process of short term capital exchange is —

Short term financing is suitable for businesses whose product demand —

Fashion house's products require —

Short term sources of finance are divided into —

A bill of exchange is —

The usual maturity period of a bill of exchange is —

A bill of exchange is "receivable" for —

A seller can convert a bill of exchange into cash before maturity by —

On a discount rate of 8% per annum, a Tk 500 three-month bill discounted yields the seller approximately —

From the buyer's perspective, the bill of exchange is —

Bills payable acts as a short term source because —

Without the opportunity of credit purchase, a business would have to —

The main source of short term external finance is —

A borrower of Tk 6,000 payable after 6 months gets 2% discount for early repayment; he pays —

A loan repayable on demand instead of on a fixed term is called —

Demand loan suits institutions which —

Bank overdraft allows account holders to —

Bank overdraft operates through which type of account?

Interest on bank overdraft is charged —

The rate of interest of bank overdraft is —

Bank overdraft is repayable —

An ice cream factory may use bank overdraft because —

Microcredit is mainly provided for —

Which of the following are microcredit providers?

Microcredit is disbursed —

The security backing a commercial paper is —

Maximum maturity of a commercial paper is —

Purchasers of commercial paper typically use it as —

Advance from buyer is usually given by —

Advance from buyer acts as a source of finance for —

Inventory financing uses —

In inventory mortgaging, the lender's control over the inventory is kept until —

Village moneylenders charge —

If a debtor fails to repay a moneylender, the moneylender —

Village moneylenders impose interest on —

Consider the following short term sources:

Which of the following is NOT a non-institutional short term source?

Mid-term loan extends from —

The cost of capital of mid-term financing is —

Commercial banks usually grant mid-term loan against —

Both current asset and fixed asset can be used as security in case of —

Syndication of commercial banks is formed mainly to —

Commercial banks fix mid-term loan interest rate by considering —

Specialized financial institutions are established under —

Which of the following is a specialized financial institution?

Which of the following is an NGO providing mid-term loan?

In addition to fund, NGOs provide —

Which of the following is a capital market institution providing mid-term loan?

Long term financing extends from —

Long term fund is usually used to acquire —

If long term fund is collected through selling shares, the fund need not be repaid until —

In sole proprietorship and partnership, owner's capital can be used for —

Share dividend is —

Debenture interest is —

The cost of finance through share selling is higher than long term loan because —

Long term loans are usually given against —

Before sanctioning long term loan, banks analyze —

Through the process of capital budgeting, an organization measures —

Long term loan is collected for —

A debenture means —

Interest payable on a debenture is —

Main advantage of debenture financing is —

Debenture interest must be paid —

Debenture is an alternative to —

Leasing is a —

Ownership of a leased property remains with —

Under a lease contract, the lessee pays the leasing company —

In the textbook example, a business firm takes a photocopy machine on lease for —

Apart from supplying property, a leasing company also provides —

Leasing is especially useful for —

The IMF was initiated as a result of —

Current number of members of the IMF is —

The latest member of the IMF is —

Headquarters of the IMF is in —

The IMF mainly helps to —

A common share represents —

From the company's perspective, the sale of common shares is —

The maturity period of a common share is —

Shareholders have voting rights mainly in the —

In the event of company liquidation, the invested capital of common shareholders is —

Consider the following long term sources of external finance:

In sole proprietorship and partnership businesses, fund is collected usually through —

In a public limited company, fund is collected mainly by —

According to Picture 2.1, long term loan and share issue are applicable mainly to —

According to Picture 2.1, overdraft, short term loan and leasing are acceptable for —

For a new business with no fixed asset, the most logical long term source is —

To purchase expensive equipment, machinery, land and buildings, the appropriate sources are —

For short term needs like raw material purchase, wages and house rent, the suitable sources are —

When selecting source of fund, an organization prefers the one with —

To reduce the tax burden, fund collection through bank loan can be better than internal sources because —

If a borrower against security cannot repay the loan within the specified period, the lender —

Consider the following factors for selecting source of fund:

Which is the source of mid-term finance?

Factors that are considered to solve the financial problems of business organizations are —

Mr. Bazlur Rahman, a businessman of garment industry, has rented some necessary machines and equipments for 7 years for his new enterprise. What source has Mr. Bazlur Rahman taken support from for fund collection?

In case of fund collection through leasing, Mr. Bazlur Rahman has avoided —

A commercial paper is —

In business expansion, the role of reserve fund is mainly to —

A businessman like Dinanath Chakraborty who has been collecting money for a short time for his Jamdani business is using —

To expand the business and arrange a factory for 10 years, Dinanath Chakraborty should rely on —

Dividend equalization fund is created to —

Institutional funding that is provided for a term of five years or more is —

The type of government financial institution that helped Mr. Shafiq for his leather industry is best described as —

Non-governmental organizations (NGOs) help young entrepreneurs by —

The process of bill discounting allows the seller to —

A rural moneylender exploits creditors by —

Internal funding is more advantageous than external funding mainly because —

Undistributed profit reduces the cost of capital because it —