Tag: sources of business finance

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Questions Related to sources of business finance

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Creditors are the external stakeholders of a company.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Creditors are the external stakeholders of a company- this is a true statement since creditors belong to the entities outside the business organization. Like creditors, officials and suppliers are also external stakeholders.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

An investor earns investment income or dividend. A creditor earns interest income and other credit charges.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
An investor contributes asset in a form of capital or equity.
A creditor contributes asset in a form of debt or liability. Thus, an investor earns investment income or dividend. A creditor earns interest income and other credit charges.
Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Internal stakeholders are people who are already committed to serving your organization as ________.

  1. Board members

  2. Staff

  3. Managers

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Internal stakeholders are people who are already committed to serving your organization as board members, staff and managers. Internal stakeholders are referred as entities within business organization.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Stakeholders of a company does not include ________________.

  1. Communities

  2. Trade Unions

  3. Government

  4. Technology
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stakeholders of a company does not include technology since technology does not have any interest with business. It does not get affected by the business activities.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

_____ contributes asset in the form of debt or liability.

  1. A debtor

  2. An investor

  3. Customer

  4. A creditor
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 A creditor contributes asset in the form of debt or liability. Company or business organization owes money to creditors, thus, creditor contributes money in the debt or liability form.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

_______ are one of the most immediate external stakeholders that a company must consider.

  1. Employees

  2. Customers

  3. Directors

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Customers are one of the most immediate external stakeholders that a company must consider.External stakeholders belong to the entities outside the business organization. Like customers, officials and suppliers are also external stakeholders.