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Sources of finance for a private sector entity primarily include (select all that apply):
Suggested Answer: B, C, D
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Sources of funds for private sector commonly include revenues from sales, shareholders and long-term loans. Taxpayers would not normally be thought of as a source of funds for private sector, alt-hough in recent Coronavirus times, in some countries, such as the UK, businesses have received considerable support. But that is abnormal.
Short-term sources such as overdrafts are not to be relied upon on a regular or long-term basis.
25 comments · newest first
AN
An
11 months ago
Really? I thought private companies relied more on personal investments.
CI
Ciara
11 months ago
Shareholders' funds are crucial for growth!
CH
Chan
12 months ago
Wait, taxpayers? That doesn't make sense for private entities.
KE
Kendra
12 months ago
Definitely agree, sales revenues too!
GE
Gerald
1 year ago
Long-term bank loans are a big source!
TE
Terrilyn
1 year ago
Shareholders' funds should be included too, right? I recall a practice question where we had to identify different funding sources, and that one was definitely mentioned.
JE
Jeffrey
1 year ago
I think sales revenues are definitely a source of finance since they come directly from the business operations.
NA
Nakisha
1 year ago
Long-term bank loans seem like a solid option for financing, but I’m a bit unsure if they’re the only type of loans available.
EU
Eulah
1 year ago
I remember we discussed that taxpayers are more related to public sector funding, so I think that one is definitely not a source for private entities.
CH
Cherelle
1 year ago
This is a good question to test our knowledge of private sector financing. I'll methodically go through each option and select the ones that apply based on what I've learned.
AL
Aliza
1 year ago
Wait, I'm confused. Aren't taxpayers a source of funding for public sector organizations, not private ones? I better double-check my understanding here.
MA
Margurite
1 year ago
Okay, I've got this. Taxpayers and sales revenues are definitely not sources of finance for a private company. But long-term bank loans and shareholders' funds are common ways for private entities to raise capital.
MI
Micheline
1 year ago
Hmm, I'm a bit unsure about this one. I'll need to think through the differences between public and private sector financing to make sure I get this right.
TU
Tu
1 year ago
This looks like a straightforward question on sources of finance for private entities. I'll carefully review each option and select the ones that apply.
DE
Delila
1 year ago
Hmm, I'm not totally sure about this one. I'll have to think it through carefully and consider the different options.
KA
Kami
1 year ago
This question seems straightforward, but I want to make sure I understand the key details before selecting the options.
ED
Edelmira
1 year ago
I think I remember the mv command being fast, but I'm not completely sure why that is. Maybe it's about just updating the directory?
EZ
Ezekiel
2 years ago
That's correct, Grover. Taxpayers do not provide direct finance to private sector entities.
GR
Grover
2 years ago
I believe taxpayers are not a source of finance for a private sector entity.
WI
Willard
2 years ago
I agree with you, Ezekiel. Sales revenues can also be a source of finance for a private sector entity.
EZ
Ezekiel
2 years ago
I think sources of finance for a private sector entity include Long-term bank loans and Shareholders' funds.
IZ
Izetta
2 years ago
Yes, sales revenues are crucial for financing operations and growth.
DO
Dorsey
3 years ago
Sales revenues should also be considered as a source of finance, right?
MA
Maryanne
3 years ago
I agree with Virgilio, shareholders' funds are an important source of finance.
VI
Virgilio
3 years ago
I think sources of finance for a private sector entity include shareholders' funds, definitely.