Business Studies

Short-term financing is most common for financing of ____________.


ANSWER

Current assets


SOLUTION
Every business needs to invest into in current assets. These assets are also known as working capital to facilitate smooth working of day-to-day activities. Short term financing  is raised to cope up with these day-to-day activites to run a business and has to be repaid within a year's time.
View Answers

You're just one step away

Create your Digital Resume For FREE on your name's sub domain "yourname.wcard.io". Register Here!


Single Correct Medium Published on 18th 08, 2020
Next Question
Questions 244531
Subjects 8
Chapters 125
Enrolled Students 201
Enroll Now For FREE

Realted Questions

Q1 Single Correct Medium
Deposits which arise from granting loans are called ______.
  • A. primary deposits
  • B. derivative deposits
  • C. created deposits
  • D. fixed deposits

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q2 TRUE/FALSE Medium
As they are usually for smaller sums, and borrowed over fewer months or years, short term loans tend to be unsecured.
  • A. True
  • B. False

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q3 Subjective Medium
Explain the advantages of equity shares, as a source of finance.

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q4 Single Correct Medium
The _______ debentures are those which are paid after the first debentures have been paid back.
  • A. Secured
  • B. Unsecured
  • C. First
  • D. Second

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer
Q5 TRUE/FALSE Medium
state the following statements are True or False:
An individual can become a part of the company if the individual purchases the companies debt. 
  • A. True
  • B. False

Asked in: Business Studies - Sources of Business Finance


1 Verified Answer | Published on 18th 08, 2020

View Answer