Short-term Finance – NBC Institute

FM – May 2016 – L3 – Q5 – Financing Decisions and Capital Markets

Preparation of a report identifying factors in choosing the appropriate debt finance mix and restrictions on debt raising for a company.

Question

BADEJO Limited, a small company, is currently considering a major capital investment project for which additional finance will be required. It is not currently feasible to raise additional equity finance, consequently debt finance is being considered. The decision has not yet been finalized whether this debt finance will be short or long term and whether it will be at fixed or variable rates. The financial controller has asked you, as the company’s Accountant, to prepare a report for the forthcoming meeting of the board of directors.

You are required to:

a.

Prepare a draft report to the board of directors which identifies and briefly explains:
The main factors to be considered when deciding on the appropriate mix of short, medium, or long-term finance for BADEJO Limited. (8 Marks)

b.

The practical considerations which could be factors in restricting the amount of debt BADEJO Limited could raise. (7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Investment, Debt Capacity, Debt Finance, Financing Mix, Long-Term Finance, Short-term Finance
Level: Level 3

Topic: Financing Decisions and Capital Markets

BMF – May 2016 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

This question assesses the understanding of sources of business financing.

Question

Which of the following is NOT a source of financing?
A. Bank overdrafts
B. Short-term bank loans
C. Suppliers
D. Proceeds of disposal of fixed assets
E. Operating leases

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Disposal, Financing, Short-term Finance
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2016

BMF – May 2016 – L1 – SA – Q8 – Basics of Business Finance and Financial Markets

This question focuses on identifying sources of short-term funds for a business.

Question

The following are sources of short-term funds, EXCEPT:
A. Bank Overdraft
B. Trade Payables
C. Operating Leases
D. Lease Finance
E. Debt Factoring

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Loans, Funding Options, Short-term Finance
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2016

BMF – MAY 2015 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying the most commonly used source of short-term finance for businesses.

Question

Which of the following sources of finance available to businesses is the most frequently used for short-term finance?

A. Bank borrowing
B. Rights issues
C. New share issues
D. Retained earnings
E. Trade credit

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank borrowing, Financial management, Short-term Finance, Sources of finance, Trade Credit
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2015

BF – Nov 2015 – L1 – SA – Q8 – Investment Decisions

Identifying the spontaneous source of short-term finance.

Question

Which of the underlisted short-term finance sources can be regarded as a spontaneous source of short term fund?
A. Bank overdrafts
B. Accruals
C. Line of credit
D. Revolving credit agreement
E. Commercial paper

Answer

Find Related Questions by Tags, levels, etc.

Tags: Short-term Finance, Spontaneous Fund
Level: Level 1

Topic: Investment Decisions
Series: NOV 2015

BMF – May 2017 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Multiple-choice question on identifying an unusual source of short-term finance.

Question

Which of the following is NOT a usual source of short-term finance?
A. Short-term bank loans
B. Commercial paper
C. Trade payables
D. Bank overdraft
E. Lease finance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Finance, Financial Sources, Short-term Finance
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2017

FM – May 2021 – L2 – Q3c – Factoring Agency

Define what a factoring agency is and explain its role.

Question

What is a factoring agency?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounts Receivable, Factoring Agency, Short-term Finance
Level: Level 2

Topic: Working Capital Management
Series: MAY 2021

FM – May 2016 – L3 – Q5 – Financing Decisions and Capital Markets

Preparation of a report identifying factors in choosing the appropriate debt finance mix and restrictions on debt raising for a company.

Question

You are required to:

a.

b.

The practical considerations which could be factors in restricting the amount of debt BADEJO Limited could raise. (7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Investment, Debt Capacity, Debt Finance, Financing Mix, Long-Term Finance, Short-term Finance
Level: Level 3

Topic: Financing Decisions and Capital Markets

BMF – May 2016 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

This question assesses the understanding of sources of business financing.

Question

Which of the following is NOT a source of financing?
A. Bank overdrafts
B. Short-term bank loans
C. Suppliers
D. Proceeds of disposal of fixed assets
E. Operating leases

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Disposal, Financing, Short-term Finance
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2016

BMF – May 2016 – L1 – SA – Q8 – Basics of Business Finance and Financial Markets

This question focuses on identifying sources of short-term funds for a business.

Question

The following are sources of short-term funds, EXCEPT:
A. Bank Overdraft
B. Trade Payables
C. Operating Leases
D. Lease Finance
E. Debt Factoring

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Loans, Funding Options, Short-term Finance
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2016

BMF – MAY 2015 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying the most commonly used source of short-term finance for businesses.

Question

Which of the following sources of finance available to businesses is the most frequently used for short-term finance?

A. Bank borrowing
B. Rights issues
C. New share issues
D. Retained earnings
E. Trade credit

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank borrowing, Financial management, Short-term Finance, Sources of finance, Trade Credit
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2015

BF – Nov 2015 – L1 – SA – Q8 – Investment Decisions

Identifying the spontaneous source of short-term finance.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Short-term Finance, Spontaneous Fund
Level: Level 1

Topic: Investment Decisions
Series: NOV 2015

BMF – May 2017 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Multiple-choice question on identifying an unusual source of short-term finance.

Question

Which of the following is NOT a usual source of short-term finance?
A. Short-term bank loans
B. Commercial paper
C. Trade payables
D. Bank overdraft
E. Lease finance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Finance, Financial Sources, Short-term Finance
Level: Level 1

Topic: Basics of Business Finance and Financial Markets
Series: MAY 2017

FM – May 2021 – L2 – Q3c – Factoring Agency

Define what a factoring agency is and explain its role.

Question

What is a factoring agency?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounts Receivable, Factoring Agency, Short-term Finance
Level: Level 2

Topic: Working Capital Management
Series: MAY 2021

Question Tag: Short-term Finance

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FM – May 2016 – L3 – Q5 – Financing Decisions and Capital Markets

Preparation of a report identifying factors in choosing the appropriate debt finance mix and restrictions on debt raising for a company.

a.

b.

You're reporting an error for "FM – May 2016 – L3 – Q5 – Financing Decisions and Capital Markets"

BMF – May 2016 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

This question assesses the understanding of sources of business financing.

You're reporting an error for "BMF – May 2016 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets"

BMF – May 2016 – L1 – SA – Q8 – Basics of Business Finance and Financial Markets

This question focuses on identifying sources of short-term funds for a business.

You're reporting an error for "BMF – May 2016 – L1 – SA – Q8 – Basics of Business Finance and Financial Markets"

BMF – MAY 2015 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying the most commonly used source of short-term finance for businesses.

You're reporting an error for "BMF – MAY 2015 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets"

BF – Nov 2015 – L1 – SA – Q8 – Investment Decisions

Identifying the spontaneous source of short-term finance.

You're reporting an error for "BF – Nov 2015 – L1 – SA – Q8 – Investment Decisions"

BMF – May 2017 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Multiple-choice question on identifying an unusual source of short-term finance.

You're reporting an error for "BMF – May 2017 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

FM – May 2021 – L2 – Q3c – Factoring Agency

Define what a factoring agency is and explain its role.

You're reporting an error for "FM – May 2021 – L2 – Q3c – Factoring Agency"

FM – May 2016 – L3 – Q5 – Financing Decisions and Capital Markets

Preparation of a report identifying factors in choosing the appropriate debt finance mix and restrictions on debt raising for a company.

a.

b.

You're reporting an error for "FM – May 2016 – L3 – Q5 – Financing Decisions and Capital Markets"

BMF – May 2016 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets

This question assesses the understanding of sources of business financing.

You're reporting an error for "BMF – May 2016 – L1 – SA – Q11 – Basics of Business Finance and Financial Markets"

BMF – May 2016 – L1 – SA – Q8 – Basics of Business Finance and Financial Markets

This question focuses on identifying sources of short-term funds for a business.

You're reporting an error for "BMF – May 2016 – L1 – SA – Q8 – Basics of Business Finance and Financial Markets"

BMF – MAY 2015 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets

Identifying the most commonly used source of short-term finance for businesses.

You're reporting an error for "BMF – MAY 2015 – L1 – SA – Q15 – Basics of Business Finance and Financial Markets"

BF – Nov 2015 – L1 – SA – Q8 – Investment Decisions

Identifying the spontaneous source of short-term finance.

You're reporting an error for "BF – Nov 2015 – L1 – SA – Q8 – Investment Decisions"

BMF – May 2017 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets

Multiple-choice question on identifying an unusual source of short-term finance.

You're reporting an error for "BMF – May 2017 – L1 – SA – Q10 – Basics of Business Finance and Financial Markets"

FM – May 2021 – L2 – Q3c – Factoring Agency

Define what a factoring agency is and explain its role.

You're reporting an error for "FM – May 2021 – L2 – Q3c – Factoring Agency"

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