#1
Which of the following is considered an external source of financial funding for a business?
Retained earnings
Bank loan
Sale of goods or services
Investment by the founders
#2
Which financial institution is responsible for regulating and supervising banks in the United States?
Federal Reserve
World Bank
International Monetary Fund
European Central Bank
#3
What is the primary purpose of a business obtaining trade credit?
To issue corporate bonds
To invest in startups
To delay payment for goods or services received
To secure venture capital
#4
What is the primary function of a financial intermediary?
To issue government grants
To provide venture capital
To facilitate the flow of funds between savers and borrowers
To regulate financial markets
#5
In the context of financial markets, what does the term 'liquidity' refer to?
The ease of converting an asset into cash without significant loss of value
Issuing government grants
Obtaining venture capital
Issuing corporate bonds
#6
What is the primary function of venture capital in financial funding?
Providing long-term loans
Investing in startups and high-growth companies
Offering trade credit
Providing government grants
#7
In the context of financial funding, what does the term 'IPO' stand for?
Internal Public Offering
International Private Operation
Initial Public Offering
Individual Pension Obligation
#8
What is the main purpose of crowdfunding as a source of financial funding?
Providing long-term loans to businesses
Collecting small amounts of money from a large number of people
Issuing corporate bonds
Investing in government securities
#9
In the context of mergers and acquisitions, what is a 'leveraged buyout' (LBO)?
A buyout funded primarily by debt
A buyout funded entirely by equity
A buyout funded by government grants
A buyout funded by venture capital
#10
In financial terms, what does the acronym ROI stand for?
Return on Investment
Rate of Inflation
Risk of Insolvency
Revenue from Operations
#11
Which type of financing involves a company selling its accounts receivable to a third party at a discount?
Venture capital
Factoring
Mezzanine financing
Initial Public Offering (IPO)
#12
Which financial instrument represents a form of debt financing?
Common stock
Preferred stock
Corporate bonds
Equity warrants
#13
What is the concept of mezzanine financing in the context of financial funding?
Obtaining funds from angel investors
A hybrid of debt and equity financing
Government subsidies for businesses
Acquiring funds through crowdfunding
#14
What is the role of angel investors in providing financial funding to startups?
Providing government grants
Investing personal funds in startups
Issuing corporate bonds
Regulating financial markets
#15
What financial concept involves spreading investments across different assets to reduce risk?
Leverage
Diversification
Hedging
Arbitrage
#16
What is the purpose of a financial guarantor in the context of bond issuance?
To provide venture capital
To ensure timely payment of interest and principal
To issue common stock
To offer trade credit
#17
In the realm of personal finance, what does the term '401(k)' typically refer to?
A form of government grant
A retirement savings plan
A type of venture capital
A financial derivative