Debt and Equity Financing (HSC SSCE Business Studies): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does debt finance create for a business?
What does debt finance create for a business?
A liability to be repaid
What is a key feature of equity finance regarding repayment?
What is a key feature of equity finance regarding repayment?
Has no fixed repayment date
Which payments are tax deductible?
Which payments are tax deductible?
Interest payments on debt
In liquidation, who gets paid first from remaining assets?
In liquidation, who gets paid first from remaining assets?
Lenders
What does 'gearing' refer to?
What does 'gearing' refer to?
Proportion of debt to equity
What advantage does debt finance offer regarding ownership?
What advantage does debt finance offer regarding ownership?
No ownership dilution
What is a disadvantage of bringing in new equity holders?
What is a disadvantage of bringing in new equity holders?
Ownership dilution
What is the relationship between risk and return in finance?
What is the relationship between risk and return in finance?
Higher risk requires higher return
What is trade credit?
What is trade credit?
Agreement allowing delayed supplier payment
What is an advantage of equity finance regarding payments?
What is an advantage of equity finance regarding payments?
No repayment obligation