When an Entrepreneur Obtains Financing from a Financial Institution in the Form

question 46

Multiple Choice

When an entrepreneur obtains financing from a financial institution in the form of a loan,it is termed as ________.

• A)angel investing
• B)capital investments
• C)bank financing
• D)loan sharking
• E)corporate funding

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Definitions:

Depreciation Expense

Spreading out the expense of a physical asset over the period it's in use.

Operating Activities

Components of a business's cash flow statement that relates to its core operations, including cash received from sales and cash paid for goods and services.

Net Income

The amount of money remaining after all operating expenses, taxes, and other costs have been subtracted from total revenue.

Net Cash Flows

Net cash flows illustrate the amount of money being received minus the amount of money being spent by a business over a specific period, reflecting its financial health.