ANALYSIS – QUESTIONS AND CORRECT
ANSWERS (LATEST VERIFIED CONTENT)
Raising finance - <<<<<CORRECT ANSWER >>>>>>-
Companies can issue their own securities in the financial market,
particularly in the capital market
Sole trader - <<<<<CORRECT ANSWER >>>>>>-A
business in which one person provides the permanent finance and, in
return, has full control of the business and is able to keep all of the
profits.
Unlimited liability
Partnership - <<<<<CORRECT ANSWER >>>>>>-A
business in which two or more persons combine their assets and
skills. Limited liability
, Company - <<<<<CORRECT ANSWER >>>>>>-
Independent legal entity able to do business in its own right.
Businesses owned by shareholders with limited liability. Can be listed
on the public stock exchange
Commercial banks - <<<<<CORRECT ANSWER
>>>>>>-Privately owned financial institutions that accept demand
deposits and make loans and provide other services for the public.
offer the widest range of services to businesses.
Insurance companies - <<<<<CORRECT ANSWER
>>>>>>-Provide funding to companies through the purchase of
shares and bonds in the direct finance markets and fund private
companies through private placement funding
Investment funds - <<<<<CORRECT ANSWER >>>>>>-
Sells shares to investors and use the funds to purchase a wide variety
of direct and indirect financial instruments