Comprehension Questions
1. Why do all corporations need financing?
2. What dues equity funding mean?
3. What does debt funding mean?
4. How is the value of a share determined?
5. What activities produce an inflow and outflow of capital?
6.What can happen if an enterprise has a greater outflow of capital than an inflow?
7. Why is the risk involved an important factor in determining fund raising?
Vocabulary Practice
Choose the necessary word and put it in the sentence.
1. ... funding is a financing formed by |
borrowing. | 1equity
2. They have borrowed much money and |
they have to pay a big .... | 2 negotiable
3. Financing by shares is called... funding. | 3 interest
4. That is a very profitable deal, for that |
purpose we need extra .... | 4 inventory
5. You can sell your shares and .... | 5 funding
They are... | 6 inflow
6. The current assets of a company |
usually include cash and ... | 7 bond
7. As a result of this deal we'11 have |
greater ... than outflow. | 8 debt
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