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

D. Lease Finance

Explanation:

Lease Finance is typically a long-term funding option used for acquiring assets like machinery, property, or vehicles. On the other hand, Bank Overdraft, Trade Payables, Operating Leases, and Debt Factoring are more aligned with short-term financing options that businesses use to manage immediate cash flow needs or cover short-term liabilities.

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

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

Uploader: Kwame Aikins