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What are risk financing variables?
Severity and frequency.
What are the sources of capital formation for small and medium scale enterprises?
Venture Capital market, equity financing (which could be through public stock offering or private placements ), informal risk capital (called angel financing) and debt financing.
What is maturity matching approach?
Hedge risk by matching the maturities of assets and liabilities. Permanent current assets are financed with long-term financing, while temporary current assets are financed with short-term financing. There are no excess funds.
What is LPO financing?
Financing based on invoiced amounts. For example as collateral the bank may lend you up to 70% of your total invoices to enable you to meet your contractual obligations. In return the bank has mitigated it's risk of collection and they get interest for their services.
Does your credit score affect the interest rate when you apply for home financing?
Your credit score can possibly affect your interest rate when you apply for home financing. If you have a low credit score, you are considered a higher risk to the bank, and therefore, they may raise your interest rate.
What are risk financing variables?
Severity and frequency.
How is a entrepreneur different from any other worker?
Because it take risk of financing
A firm that uses short-term financing methods for a portion of permanent current assets is assuming more risk but expects higher returns than a firm with a normal financing plan. Explain.?
By establishing a long-term financing arrangement for temporary current assets, a firm is assured of having necessary funding in good times as well as bad, thus we say there is low risk. However, long-term financing is generally more expensive than short-term financing and profits may be lower than those which could be achieved with a synchronized or normal financing arrangement for temporary current assets
What are the sources of capital formation for small and medium scale enterprises?
Venture Capital market, equity financing (which could be through public stock offering or private placements ), informal risk capital (called angel financing) and debt financing.
Which one of the folllowing is not one of the four risk management principles?
The four fundamental principles of risk management typically include risk identification, risk assessment, risk control, and risk financing. If you provide the options available, I can help identify which one does not belong to this framework.
What is maturity matching approach?
Hedge risk by matching the maturities of assets and liabilities. Permanent current assets are financed with long-term financing, while temporary current assets are financed with short-term financing. There are no excess funds.
What is LPO financing?
Financing based on invoiced amounts. For example as collateral the bank may lend you up to 70% of your total invoices to enable you to meet your contractual obligations. In return the bank has mitigated it's risk of collection and they get interest for their services.
Why were Joint-stock Companies helpful in financing colonies in North America?
Large sums of money could be raised with little risk to the investors.
Does your credit score affect the interest rate when you apply for home financing?
Your credit score can possibly affect your interest rate when you apply for home financing. If you have a low credit score, you are considered a higher risk to the bank, and therefore, they may raise your interest rate.
What is a Government-Backed Financing?
Government backed financing is financing that has the promise of the government standing behind it. It is different from private investor financing or bank backed financing.
What is the concept of asset based financing about?
When companies tend to have bad credit and can not get loans they tend to do asset based financing. With this they give the lender collateral, the goods need to be high quality and the quality of the collateral provides the amount of loan.
What are external financing alternatives?
External financing alternatives refer to funding sources outside a business's internal cash flow. These can include equity financing, where companies raise capital by selling shares, and debt financing, which involves borrowing money through loans or issuing bonds. Other options include venture capital, crowdfunding, and grants. Each alternative has its own advantages and disadvantages, impacting ownership structure, repayment obligations, and overall financial risk.
