企業融資需要：練習題

What is the primary difference between cash and profit in a business context?

A highly profitable construction company is forced into liquidation despite having a record-breaking order book for the next two years and significant non-current assets. Which of the following is the most likely explanation for this business failure?

A business with high profitability is facing a liquidity crisis and is unable to meet its short-term debts. Which of the following sets of circumstances is the most likely cause of this situation?

Which of the following is considered a revenue expenditure for a clothing retailer?

The purchase of a new delivery van for a courier company is best classified as which type of expenditure?

Identify and briefly describe one internal source of finance available to a sole trader.

Distinguish between contribution per unit and total profit, explaining how a business can have a positive contribution but still record a net loss.

Explain why a business might experience a liquidity crisis leading to insolvency even while reporting significant accounting profits during a period of rapid expansion.

(a) Define working capital and explain its importance to a business like a supermarket chain for its day-to-day operations. (4 marks)

(b) Explain the difference between capital expenditure and revenue expenditure, providing an example of each in the context of the supermarket chain. (4 marks)

A successful entrepreneur wants to expand their small printing business by purchasing a high-speed digital press costing \( \$25,000 \). They are comparing leasing the equipment versus obtaining a bank loan.

(a) Explain two advantages of leasing the equipment rather than buying it with a bank loan. (3 points)

(b) Identify and explain one internal source of finance that might have been used instead. (2 points)