Tag: sources of business finance

Questions Related to sources of business finance

Creditors are the external stakeholders of a company.

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

  1. True

  2. False

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Correct Option: A
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.

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

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

  1. True

  2. False

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Correct Option: A
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.

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

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

  1. Board members

  2. Staff

  3. Managers

  4. All of the above

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Correct Option: D
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.

Stakeholders of a company does not include ________________.

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

  1. Communities

  2. Trade Unions

  3. Government

  4. Technology

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Correct Option: D
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.

_____ contributes asset in the form of debt or liability.

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

  1. A debtor

  2. An investor

  3. Customer

  4. A creditor

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Correct Option: D
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.

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

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

  1. Employees

  2. Customers

  3. Directors

  4. All of the above

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Correct Option: B
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.