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What is the most likely source of finance for buying a new IT system?
Mortgage
Factoring
A bank loan
The owner of Jack’s Furniture Workshop, a one man company, manages to get a massive order to fit out a secondary school in Michigan. He puts $10.000 of his savings into the company so he can buy the needed raw materials, fully expecting to earn it back quickly.
This is an example of:
Subsidies
Trade Credit
Personal Funds
Share Capital
The Board of Ching Shu, a debt collection firm, decides to postpone the payout of shareholder dividends to finance company expansion. The funds are used to open new offices, increasing their circle of activity. The shareholders think this is a great move as they think this will increase their stock value over time.
This is an example of:
Grants
Share Capital
Retained Profits
Venture Capital