Option 1

Financing allows you to fully or partially cover production costs

The main disadvantage of self-financing a business is associated with the limited funds available to the company.

External financing of a business can be attracted through the issuance of shares and their placement on the stock market

The internal source of business financing is the issuance of bonds

External source of financing of the company - depreciation deductions

FirmY- beauty saloon. Find examples of a firm's variable costs in the list below.Y

Electricity payment

Administration salary costs

Costs for the purchase of shampoos, hair dyes

Salon room rental

Interest expense on a previously taken loan

Option 2

Find examples of labor as a factor of production in the list below and write down the numbers under which they are indicated:

Field sown with wheat

Lower and middle managers

Machine tools and equipment

Explored oil fields

Engineering staff

Enterprise building

Vitaliy Viktorovich draws up a business plan for the development of his enterprise. Which of the following can he use as external sources of business financing? Write down the numbers under which they are indicated.

Perfection production technologies.

Issue and placement of company shares.

Attracting loans

Tax deductions

Select correct judgments about the costs of the company and write down the numbers under which they are indicated:

Cost is the cost of production and distribution costs. finished products

The payment of interest on a previously taken loan is short term to variable costs

The firm incurs fixed costs even if production is stopped

Variable costs in the short run include fees for raw materials and materials, electricity and transport services

Variable costs in the short run include administration salaries.

Option 3

Choose the correct judgments about the sources of business financing and write down the numbers under which they are indicated:

External financing of a business can be carried out using borrowed funds

External sources of financing of the firm are formed at the expense of its profits.

The organizational and legal form of a business may reflect the sources of its financing

Business financing can be carried out at the expense of government orders

The main external source of financing for the firm is tax deductions.

Establish a correspondence between examples and types of company costs in the short term: for each position given in the first column, select the corresponding position from the second column:

Choose the correct judgments about factor incomes and write down the numbers under which they are indicated:

Profit is the excess of a firm's total revenue over its costs.

Factor income refers to supply and demand.

Factor income refers to the resources that people use to create the benefits of life.

Factor income from labor is called salary

Rent is a factor income from the use of land

Option 4

FirmZprovides cleaning services. Find examples of a firm's fixed costs in the list below.Zin the short term and write down the numbers under which they are indicated:

Acquisition costs detergents

Company office rent

Costs for paying salaries to employees of the administrative apparatus

The cost of repaying interest on a previously taken loan

The cost of paying piecework wages to employees

Electricity payment

Establish a correspondence between the characteristics and factors of production: for each position given in the first column, select the corresponding position from the second column:

Sergey Petrovich draws up a business plan for the development of his enterprise. Which of the following can he use as external sources of business financing? Write down the numbers under which they are indicated.

Improving production technologies

Issue and placement of company shares

Increasing labor productivity

Income from the sale of the company's products

Attracting loans

Tax deductions

(According to Z. Body, R. Merton)

Explanation.

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

2) three organizations, for example:

Investment funds;

pension funds;

State.

Explanation.

Explanation.

1) Types of sources:

External funding.

1) retained earnings;

External funding:

1) A set of forms and methods of financial support for the production of goods and services is called financing.

2) Many enterprises are interested in long-term attraction borrowed money.

3) When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out.

4) External sources of business financing include depreciation.

5) Attracting loans is considered as internal source business financing.

Explanation.

There are internal and external sources of cash flow.

Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Internal sources of financing include investments of the founders of the company in authorized capital, as well as funds received after the sale of the company's property, receipt of rent for the lease of property.

External sources are divided into two groups: debt financing and grant financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans; long-term credits and loans; accounts payable.

1) The totality of forms and methods of financial support for the production of goods and services is called financing - yes, that's right.

2) Many enterprises are interested in long-term borrowing - yes, that's right.

3) When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out - yes, that's right.

4) Depreciation deductions are referred to as external sources of business financing - no, that's not true.

5) Attracting loans is considered as an internal source of business financing - no, that's not true.

Answer: 123.

Stanislav Ivanov 06.04.2017 22:04

The answer is option #2. "Many enterprises are interested in long-term borrowing." Many enterprises (that is, the majority, that is, the vast majority) are interested in reaching self-sufficiency and using internal capital, but not living on loans. Some nonsense.

Valentin Ivanovich Kirichenko

In social science, there are many such questions because of the specifics of our subject. This question is from the KIM developers. this may well occur in a real exam .......

Anvar Tashtemirov 15.04.2017 18:12

5) is correct. Attracting loans refers to the internal source of business financing.

Valentin Ivanovich Kirichenko

No, external

Establish a correspondence between business financing sources and types of sources: for each position given in the first column, select the corresponding position from the second column.

Explanation.

Internal sources of financing - sources that the firm itself has.

A) net profit - internal sources of business financing.

B) bank credit - external sources of business financing.

C) depreciation deductions - internal sources of business financing.

D) extra-budgetary funds - external sources of business financing.

D) funds of the population - external sources of business financing.

Answer: 12122.

Answer: 12122

Valentin Ivanovich Kirichenko

Any money taken from the public.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Financing is a way of providing an enterprise with money.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners.

3) External financing of a business can be carried out by issuing shares of an enterprise.

4) External sources of financing - these are sources of cash receipts, which are formed at the expense of the results of the entrepreneurial activity of the enterprise.

5) The main external source of financing for the firm is its profit.

Explanation.

1) Financing is a way of providing an enterprise with money - yes, that's right.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners - yes, that's right.

3) External financing of a business can be carried out by issuing shares of an enterprise - yes, that's right.

4) External sources of financing are sources of cash receipts that are formed from the results of the enterprise's entrepreneurial activities - no, that's not true.

5) The main external source of financing of the firm - its profit - no, not true.

Answer: 123.

Answer: 123

Valentin Ivanovich Kirichenko

NO. it is an external source.

Akirita Sahina 29.05.2017 21:33

Isn't profit the main source???

Valentin Ivanovich Kirichenko

It says external, profit - internal.

Based on social science knowledge, explain the meaning of the concept of "entrepreneurship". What two directions of the financial policy of a joint-stock company that does not plan a significant expansion of production are named in the text? What is the essential difference between the use of external financing and the use of internal financing considered by the authors?

Read the text and complete tasks 21-24.

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings accrued but not paid wage. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For joint stock company, which occupies a stable position in its business and does not intend to significantly expand it with the attraction of significant funds, decisions on financial matters are accepted, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation is raising funds from external sources that may be needed to expand its business on a large scale, management decisions are more complex and require, accordingly, more time. Outside investors usually want to see detailed plans use of their funds, and also want to make sure that investment projects companies will provide cash receipts sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources.

(According to Z. Body, R. Merton)

What sources of business financing are indicated in the text? Specify two types. Based on the text, give two examples for each of them.

Explanation.

The correct answer must include the following items:

1) Types of sources:

Domestic financing;

External funding.

2) Two examples are given for each:

Domestic funding:

1) retained earnings;

2) accrued but not paid wages;

External funding:

1) funds of creditors and shareholders;

2) funds from the issue of bonds or shares.

Sources of internal and/or external funding may be specified in other formulations that are similar in meaning.

Suggest why external investors are more skeptical of the firm's prospects for success than are its managers. What organizations can act as external investors (using social science, list any three types of such organizations)?

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

Managers are not liable for the company's debts, their task is to attract investors, so they give optimistic assessments of business prospects, and investors calculate possible risks, so their assessments are more skeptical;

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Why is a large-scale expansion of the company's business not always economically feasible? Using the text, social science knowledge and facts of social life, give three explanations.

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided among existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

3) in a situation of financial instability in the country, sharp fluctuations in the exchange rate of the national currency and low quotations of "blue chips", a large-scale expansion of business with the attraction of expensive loans may not be economically feasible. Other pertinent explanations may be given.

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

The use of external financing makes the company closely dependent on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources / if the corporation attracts funds from external sources that may be needed for the large-scale expansion of its business, management decisions are more complex and require, accordingly, more time.

Answers to questions can be given in other formulations that are close in meaning.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Internal sources of business financing include borrowed capital.

2) Financing refers to the process of formation of the company's capital in all its forms.

3) External financing always ensures the financial independence of the enterprise.

4) Domestic financing involves the use own funds firms.

5) Shareholding allows the firm to raise external funds.

Explanation.

According to the place of origin, the financial resources of an enterprise are classified into: internal financing and external financing.

Internal financing involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income.

With external financing, funds are used that come into the organization from the outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

1) Internal sources of business financing include borrowed capital - no, that's not true.

2) Financing refers to the process of formation of the company's capital in all its forms - yes, that's right.

3) External financing always ensures the financial independence of the enterprise - no, it is not true.

4) Internal financing involves the use of the firm's own funds - yes, that's right.

5) Shareholding allows the firm to raise external funds - yes, that's right.

Answer: 245.

Answer: 245

Establish a correspondence between examples and types of funding sources: for each position given in the first column, select the corresponding position from the second column.

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs, residual (net) profit. Reimbursement of production costs is related financing, since the funds are allocated to certain areas of expenditure. Residual income is the profit that remains in the firm after taxes have been paid. Net income is used by the entrepreneur to pay for various expenses in the firm, except for expenses. Cash from the residual income is used to develop the business, to pay dividends, and to reward employees of the company. Internal sources of financing include investments of the founders of the company in the authorized capital, as well as funds received after the sale of the company's property, receiving rent for renting out the property.

External sources are divided into two groups: debt financing and grant financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans, long-term credits and loans, accounts payable.

A) the firm's net profit is internal.

B) state order - external.

C) obtaining loans - external.

D) depreciation charges - internal.

D) issue and sale valuable papers- external. The issue of securities is a way to raise money from other economic entities, thus it is an external source of financing.

Answer: 12212.

Answer: 12212

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) The level of self-financing of an enterprise depends on its internal capabilities.

2) The profit of the firm is considered as an external source of business financing.

3) Under conditions market economy production and economic activities of firms can be carried out with the involvement of borrowed funds.

4) The issue of shares and their placement on the stock exchange can become a source of financing for an enterprise.

5) Financing at the expense of own funds simplifies the process of making managerial decisions on the development of the enterprise.

Explanation.

1) The level of self-financing of an enterprise depends on its internal capabilities - yes, that's right.

2) The company's profit is considered as an external source of business financing - no, it is not true, it is an internal source.

3) In a market economy, the production and economic activities of firms can be carried out with the involvement of borrowed funds - yes, that's right.

4) The issue of shares and their placement on the stock exchange can become a source of financing for an enterprise - yes, that's right.

5) Financing at the expense of own funds simplifies the process of making managerial decisions on the development of an enterprise - yes, that's right.

Answer: 1345.

Answer: 1345

Valentin Ivanovich Kirichenko

Question and answer from KImov developers

Alexey Polyansky 17.01.2019 04:39

why is not true Profit of the firm is considered as an external source of business financing. ?

Ivan Ivanovich

The profit of the firm, depreciation, income from the property of the firm, these are internal sources of business financing.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Increasing the volume of external financing of the business increases the degree of control of the owner over the enterprise.

2) The most common form of financing is a bank loan.

3) Internal business financing does not involve additional costs associated with raising capital.

4) The internal sources of business financing include the leasing of unused assets of the firm.

5) Financing of private business cannot be of a state nature.

Explanation.

1) Increasing the volume of external financing of a business increases the degree of control of the owner over the enterprise - no, it’s not true, on the contrary, it lowers it.

2) The most common form of financing is a bank loan - yes, that's right.

3) Internal financing of a business does not involve additional costs associated with raising capital - yes, that's right.

4) The internal sources of business financing include leasing the firm's unused assets - yes, that's right.

5) Financing of private business cannot be of a state nature - no, it is wrong, it can.

Answer: 234.

Roma Aliyev 07.06.2016 21:17

the lease of the firm's assets appears to have been an external source of funding. Written in the book FIPI I'll pass the exam.

Valentin Ivanovich Kirichenko

No, this is an internal source

Tatyana 12.12.2016 10:33

Hello! we did not understand why Internal financing of a business does not involve additional costs associated with raising capital.

Valentin Ivanovich Kirichenko

Internal financing - we use our assets, what belongs to us and we do not need to make any efforts, let alone expenses

1) insurance premiums

2) issue and sale of shares

3) attraction of investments

4) depreciation deductions

5) production restructuring

6) attraction of highly qualified specialists

Explanation.

Owners of a computer manufacturing company software planning to expand their business. Select from the list below the possible sources of funding that the owners of the company can use. Write down the numbers under which they are indicated. Enter the numbers in ascending order.

1) Insurance premiums. No, that's not true, it's the company's costs.

2) Issue and sale of shares.

3) Attracting investments. Yes, this is a way to raise funds (an external source of funding).

4) Depreciation charges. Yes, this is an internal source of funding.

5) Restructuring of production. No, this is a change in the structure, scale, and activities of the company in order to provide more effective use production factors.

6) Attracting highly qualified specialists. No, it is not true, this is the use of intensive methods (factors) of the development of the company.

Answer: 234.

Answer: 234

Select the correct judgments about the economy of the company from the list below and write down the numbers under which they are indicated.

Explanation.

1) Fixed costs in the short run include logistics costs. No, it is not true, since their volume depends on the volume of goods and services produced.

2) Firms have the opportunity to use part of the profits as sources of financing. Yes, that's right, this is one of the internal sources of business financing.

3) One of the external sources of business financing is the attraction of loans. Yes, that's right.

4) The profit of the firm is the sum of costs and revenues. No, it's not true, profit is the difference between revenue and costs.

5) Revenue is the value received from the sale of products manufactured by the company or services rendered by the company. Yes, that's right. Not to be confused with profit.

Answer: 235.

Answer: 235

Ivan draws up a business plan for the development of his enterprise. Which of the following can he use as a source of business financing? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) profit from the sale of the enterprise's products

4) depreciation fund funds

5) issue and placement of shares of the enterprise

6) increase in labor productivity

Explanation.

All sources of financing in business can be divided into internal and external. Internal - these are the sources that the company itself has. The firm's main internal source of finance is its profits.

The profit of the company is the difference between its income and costs or the cost of production. Now it is easy to figure out what the size of the company's profit depends on.

External - other firms. A firm that is short of funds may find partners who have the same problems. By creating a joint business, partners get the opportunity to expand their financial resources due to economies of scale. Selling shares is also a way to raise finance from outside, and it is a very important source of funding as a firm can have hundreds or thousands of shareholders. Banks. If a firm cannot or does not want to seek additional funds for its development by merging with other firms, it borrows them from the bank. A bank is a financial institution that opens current accounts and attracts deposits (deposits) from some firms and individuals and provides funds in the form of a loan to other firms and individuals. Such a transaction between a bank and a firm is called a bank loan.

3) profit from the sale of the company's products - yes, that's right.

4) depreciation fund funds - yes, that's right.

5) issue and placement of shares of the enterprise - yes, that's right.

6) increase in labor productivity - no, that's not true.

Answer: 1345.

Answer: 1345

Establish a correspondence between examples and types of business financing sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in response, arranging them in the order corresponding to the letters:

Explanation.

According to the place of origin, the financial resources of an enterprise are classified into internal financing and external financing. Internal financing involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income. With external financing, funds are used that come into the organization from the outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

A) issue and sale of securities - external.

B) net profit - internal.

C) attraction of investments - external.

D) the use of loans - external.

D) depreciation charges - internal.

Answer: 21221.

Answer: 21221

Firm Z plans to expand production. Which of the following can they use as a source of business funding? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) increase in labor productivity

4) profit from the sale of the enterprise's products

5) improvement of production technologies

6) issue and placement of shares of the enterprise

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs and residual (net) profit. Reimbursement of production costs is related financing, since the funds are allocated to certain areas of expenditure. Residual income is the profit that remains in the firm after taxes have been paid. Net income is used by the entrepreneur to pay for various expenses in the firm, except for expenses. Cash from the residual income is used to develop the business, to pay dividends, and to reward employees of the company. Internal sources of financing include investments of the founders of the company in the authorized capital, as well as funds received after the sale of the company's shares, the sale of the company's property, and the receipt of rent for the lease of property.

External sources are divided into two groups: debt financing, gratuitous financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans, long-term credits and loans, accounts payable.

1) attracting loans - yes, that's right.

2) tax deductions - no, not true.

3) increase in labor productivity - no, that's not true.

4) profit from the sale of the company's products - yes, that's right.

5) improvement of production technologies - no, it is not true.

6) issue and placement of shares of the enterprise - yes, that's right.

Answer: 146.

Answer: 146

List three sources of business financing and illustrate each with an example. (Each example should be formulated in detail).

Explanation.

List any three sources of business financing, each of which is illustrated with an example. (Each example should be formulated in detail).

Explanation.

The response may include the following examples:

1) Part of the profit of the firm (internal source). For example, the owner of a car repair shop sent part of the profits to the purchase of new equipment;

2) Bank loan (external source). For example, the owner of a chain of grocery stores took out a bank loan and used it to buy a modern refrigeration unit;

3) State subsidy (external source). For example, a farmer received funds from the state small business support fund to purchase an additional batch of feed.

Other examples may be given.

Establish a correspondence between business financing sources and types of sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in response, arranging them in the order corresponding to the letters:

Explanation.

A) net income

B) depreciation deductions - internal, as it involves the use of the company's own funds.

B) a bank loan

D) proceeds from the sale of shares - external, as it involves attracting funds from other economic entities.

D) public investment - external, as it involves attracting funds from other economic entities.

Answer: 11222.

Answer: 11222

Alina and Sergey draw up a business plan for the development of their enterprise. Which of the following can they use as sources of funding for their business? Write down the numbers under which these sources.

1) improvement of production technologies

2) sinking fund

3) increase in labor productivity

4) income from the sale of the enterprise's products

5) attracting loans

6) tax deductions

Explanation.

1) improvement of production technologies - no, incorrectly, a factor of economic growth.

2) depreciation fund - yes, that's right.

3) increase in labor productivity - no, incorrectly, a factor of economic growth.

4) income from the sale of the company's products - yes, that's right.

5) attracting loans - yes, that's right.

6) tax deductions - no, incorrect, cash outflow.

Answer: 245.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For a joint-stock company that has a stable position in its business and does not intend to significantly expand it with the attraction of significant funds, decisions on financial issues are made, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. External investors usually want to see detailed plans for how their funds will be used, and they also want to make sure that companies' investment projects will generate cash flows sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources.

(According to Z. Body, R. Merton)

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

The use of external financing makes the company closely dependent on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources / if the corporation attracts funds from external sources that may be needed for the large-scale expansion of its business, management decisions are more complex and require, accordingly, more time.

3) in a situation of financial instability in the country, sharp fluctuations in the exchange rate of the national currency and low quotations of "blue chips", a large-scale expansion of business with the attraction of expensive loans may not be economically feasible. Other pertinent explanations may be given.

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

Managers are not liable for the company's debts, their task is to attract investors, so they give optimistic assessments of business prospects, and investors calculate possible risks, so their assessments are more skeptical;

(Other pertinent suggestions may be made.)

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings, wages accrued but not paid. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For a joint-stock company that has a stable position in its business and does not intend to significantly expand it with the attraction of significant funds, decisions on financial issues are made, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. External investors usually want to see detailed plans for how their funds will be used, and they also want to make sure that companies' investment projects will generate cash flows sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources.

(According to Z. Body, R. Merton)

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

The use of external financing makes the company closely dependent on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources / if the corporation attracts funds from external sources that may be needed for the large-scale expansion of its business, management decisions are more complex and require, accordingly, more time.

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided among existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

3) in a situation of financial instability in the country, sharp fluctuations in the exchange rate of the national currency and low quotations of "blue chips", a large-scale expansion of business with the attraction of expensive loans may not be economically feasible. Other pertinent explanations may be given.

Option 1

1) Increasing the volume of external financing of the business increases the degree of control of the owner over the enterprise.

2) The most common form of financing is a bank loan.

3) Internal business financing does not involve additional costs associated with raising capital.

4) The internal sources of business financing include the leasing of unused assets of the firm.

5) Financing of private business cannot be of a state nature.

2. Establish a correspondence between the characteristics and types of securities: for each position given in the first column, select the corresponding position from the second column.

B) gives the right to receive a fixed percentage

B) certifies debt relationships

D) provides the right to an unconditional return of the nominal value after the expiration of the term

D) certifies the right of the owner to a share in the capital of the company

1) bond

2) ordinary share

Option 2

1. Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Financing is a way of providing an enterprise with money.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners.

3) External financing of a business can be carried out by issuing shares of an enterprise.

4) External sources of financing - these are sources of cash receipts, which are formed at the expense of the results of the entrepreneurial activity of the enterprise.

5) The main external source of financing for the firm is its profit.

2. Establish a correspondence between the sources of business financing and types of sources: for each position given in the first column, select the corresponding position from the second column.

B) bank loan

B) depreciation

D) renting out the company's assets

D) means of the population

1) internal sources of business financing

2) external sources of business financing

Write down the numbers in response, arranging them in the order corresponding to the letters:

3. Alexey T. acquired 5% of the ordinary shares of PJSC "Vikhr". What rights did Alexey T. acquire as a new shareholder of the company? Write down the numbers under which they are indicated.

1) the right to conduct on behalf of the company entrepreneurial activity

2) the right to receive part of the company's profits

3) the right to participate in the formation of the company's management bodies

4) the right to independently dispose of the property of the company

5) the right to receive part of the company's property in the event of bankruptcy

6) the right to represent the company in tax and judicial authorities

4. SECURITIES

5. In the row below, find the concept that is generalizing for all the other concepts presented. Write down this word.

Share, bond, bill, security, check.

3. Which of the following applies to the properties of a stock as a security? Write down the numbers under which these properties are indicated.

1) available for civil circulation

2) designed to maintain the stability of the national currency

3) confirms participation in the business

4) gives the owner the right to receive dividends

5) issued for a limited period

6) is of a debt nature

4. Write down the word missing in the table: SECURITIES

5. Below are some terms. All of them, with the exception of two, belong to the types of securities.

1) bill

2) bond

3) share

4) dividends

5) check

6) percentage

Find two terms that "fall out" from the general series, and write them down in the numbers under which they are indicated.

(According to Z. Body, R. Merton)

Explanation.

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

2) three organizations, for example:

Investment funds;

pension funds;

State.

Explanation.

Explanation.

1) Types of sources:

External funding.

1) retained earnings;

External funding:

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Increasing the volume of external financing of the business increases the degree of control of the owner over the enterprise.

2) The most common form of financing is a bank loan.

3) Internal business financing does not involve additional costs associated with raising capital.

4) The internal sources of business financing include the leasing of unused assets of the firm.

5) Financing of private business cannot be of a state nature.

Explanation.

1) Increasing the volume of external financing of a business increases the degree of control of the owner over the enterprise - no, it’s not true, on the contrary, it lowers it.

2) The most common form of financing is a bank loan - yes, that's right.

3) Internal financing of a business does not involve additional costs associated with raising capital - yes, that's right.

4) The internal sources of business financing include leasing the firm's unused assets - yes, that's right.

5) Financing of private business cannot be of a state nature - no, it is wrong, it can.

Answer: 234.

Roma Aliyev 07.06.2016 21:17

the lease of the firm's assets appears to have been an external source of funding. Written in the book FIPI I'll pass the exam.

Valentin Ivanovich Kirichenko

No, this is an internal source

Tatyana 12.12.2016 10:33

Hello! we did not understand why Internal financing of a business does not involve additional costs associated with raising capital.

Valentin Ivanovich Kirichenko

Internal financing - we use our assets, what belongs to us and we do not need to make any efforts, let alone expenses

Establish a correspondence between business financing sources and types of sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in response, arranging them in the order corresponding to the letters:

Explanation.

Internal sources of financing - sources that the firm itself has.

A) net profit - internal sources of business financing.

B) bank credit - external sources of business financing.

C) depreciation deductions - internal sources of business financing.

D) extra-budgetary funds - external sources of business financing.

D) funds of the population - external sources of business financing.

Answer: 12122.

Answer: 12122

Valentin Ivanovich Kirichenko

Any money taken from the public.

1) A set of forms and methods of financial support for the production of goods and services is called financing.

2) Many enterprises are interested in long-term borrowing.

3) When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out.

4) External sources of business financing include depreciation.

5) Attracting loans is considered as an internal source of business financing.

Explanation.

There are internal and external sources of cash flow.

Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Internal sources of financing include investments of the founders of the company in the authorized capital, as well as funds received after the sale of the company's property, receiving rent for renting out the property.

External sources are divided into two groups: debt financing and grant financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans; long-term credits and loans; accounts payable.

1) The totality of forms and methods of financial support for the production of goods and services is called financing - yes, that's right.

2) Many enterprises are interested in long-term borrowing - yes, that's right.

3) When choosing sources of financing, forecasting of possible changes in the composition of the assets and capital of the enterprise is carried out - yes, that's right.

4) Depreciation deductions are referred to as external sources of business financing - no, that's not true.

5) Attracting loans is considered as an internal source of business financing - no, that's not true.

Answer: 123.

Stanislav Ivanov 06.04.2017 22:04

The answer is option #2. "Many enterprises are interested in long-term borrowing." Many enterprises (that is, the majority, that is, the vast majority) are interested in reaching self-sufficiency and using internal capital, but not living on loans. Some nonsense.

Valentin Ivanovich Kirichenko

In social science, there are many such questions because of the specifics of our subject. This question is from the KIM developers. this may well occur in a real exam .......

Anvar Tashtemirov 15.04.2017 18:12

5) is correct. Attracting loans refers to the internal source of business financing.

Valentin Ivanovich Kirichenko

No, external

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Financing is a way of providing an enterprise with money.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners.

3) External financing of a business can be carried out by issuing shares of an enterprise.

4) External sources of financing - these are sources of cash receipts, which are formed at the expense of the results of the entrepreneurial activity of the enterprise.

5) The main external source of financing for the firm is its profit.

Explanation.

1) Financing is a way of providing an enterprise with money - yes, that's right.

2) The main disadvantage of self-financing a business is related to the limited funds available to its owners - yes, that's right.

3) External financing of a business can be carried out by issuing shares of an enterprise - yes, that's right.

4) External sources of financing are sources of cash receipts that are formed from the results of the enterprise's entrepreneurial activities - no, that's not true.

5) The main external source of financing of the firm - its profit - no, not true.

Answer: 123.

Answer: 123

Valentin Ivanovich Kirichenko

NO. it is an external source.

Akirita Sahina 29.05.2017 21:33

Isn't profit the main source???

Valentin Ivanovich Kirichenko

It says external, profit - internal.

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) Internal sources of business financing include borrowed capital.

2) Financing refers to the process of formation of the company's capital in all its forms.

3) External financing always ensures the financial independence of the enterprise.

4) Internal financing involves the use of the firm's own funds.

5) Shareholding allows the firm to raise external funds.

Explanation.

According to the place of origin, the financial resources of an enterprise are classified into: internal financing and external financing.

Internal financing involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income.

With external financing, funds are used that come into the organization from the outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

1) Internal sources of business financing include borrowed capital - no, that's not true.

2) Financing refers to the process of formation of the company's capital in all its forms - yes, that's right.

3) External financing always ensures the financial independence of the enterprise - no, it is not true.

4) Internal financing involves the use of the firm's own funds - yes, that's right.

5) Shareholding allows the firm to raise external funds - yes, that's right.

Answer: 245.

Answer: 245

Select the correct judgments about the sources of business financing and write down the numbers under which they are indicated.

1) The level of self-financing of an enterprise depends on its internal capabilities.

2) The profit of the firm is considered as an external source of business financing.

3) In a market economy, the production and economic activities of firms can be carried out with the involvement of borrowed funds.

4) The issue of shares and their placement on the stock exchange can become a source of financing for an enterprise.

5) Financing at the expense of own funds simplifies the process of making managerial decisions on the development of the enterprise.

Explanation.

1) The level of self-financing of an enterprise depends on its internal capabilities - yes, that's right.

2) The company's profit is considered as an external source of business financing - no, it is not true, it is an internal source.

3) In a market economy, the production and economic activities of firms can be carried out with the involvement of borrowed funds - yes, that's right.

4) The issue of shares and their placement on the stock exchange can become a source of financing for an enterprise - yes, that's right.

5) Financing at the expense of own funds simplifies the process of making managerial decisions on the development of an enterprise - yes, that's right.

Answer: 1345.

Answer: 1345

Valentin Ivanovich Kirichenko

Question and answer from KImov developers

Alexey Polyansky 17.01.2019 04:39

why is not true Profit of the firm is considered as an external source of business financing. ?

Ivan Ivanovich

The profit of the firm, depreciation, income from the property of the firm, these are internal sources of business financing.

Select the correct judgments about the economy of the company from the list below and write down the numbers under which they are indicated.

Explanation.

1) Fixed costs in the short run include logistics costs. No, it is not true, since their volume depends on the volume of goods and services produced.

2) Firms have the opportunity to use part of the profits as sources of financing. Yes, that's right, this is one of the internal sources of business financing.

3) One of the external sources of business financing is the attraction of loans. Yes, that's right.

4) The profit of the firm is the sum of costs and revenues. No, it's not true, profit is the difference between revenue and costs.

5) Revenue is the value received from the sale of products manufactured by the company or services rendered by the company. Yes, that's right. Not to be confused with profit.

Answer: 235.

Answer: 235

Ivan draws up a business plan for the development of his enterprise. Which of the following can he use as a source of business financing? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) profit from the sale of the enterprise's products

4) depreciation fund funds

5) issue and placement of shares of the enterprise

6) increase in labor productivity

Explanation.

All sources of financing in business can be divided into internal and external. Internal - these are the sources that the company itself has. The firm's main internal source of finance is its profits.

The profit of the company is the difference between its income and costs or the cost of production. Now it is easy to figure out what the size of the company's profit depends on.

External - other firms. A firm that is short of funds may find partners who have the same problems. By creating a joint business, partners get the opportunity to expand their financial resources due to economies of scale. Selling shares is also a way to raise finance from outside, and it is a very important source of funding as a firm can have hundreds or thousands of shareholders. Banks. If a firm cannot or does not want to seek additional funds for its development by merging with other firms, it borrows them from the bank. A bank is a financial institution that opens current accounts and attracts deposits (deposits) from some firms and individuals and provides funds in the form of a loan to other firms and individuals. Such a transaction between a bank and a firm is called a bank loan.

3) profit from the sale of the company's products - yes, that's right.

4) depreciation fund funds - yes, that's right.

5) issue and placement of shares of the enterprise - yes, that's right.

6) increase in labor productivity - no, that's not true.

Answer: 1345.

Answer: 1345

Establish a correspondence between examples and types of business financing sources: for each position given in the first column, select the corresponding position from the second column.

Write down the numbers in response, arranging them in the order corresponding to the letters:

Explanation.

According to the place of origin, the financial resources of an enterprise are classified into internal financing and external financing. Internal financing involves the use of those financial resources, the sources of which are formed in the process of financial and economic activities of the organization. An example of such sources is net profit, depreciation, accounts payable, reserves for future expenses and payments, deferred income. With external financing, funds are used that come into the organization from the outside world. Founders, citizens, the state, financial and credit organizations, non-financial organizations can be sources of external financing.

A) issue and sale of securities - external.

B) net profit - internal.

C) attraction of investments - external.

D) the use of loans - external.

D) depreciation charges - internal.

Answer: 21221.

Answer: 21221

Firm Z plans to expand production. Which of the following can they use as a source of business funding? Write down the numbers under which they are indicated.

1) attracting loans

2) tax deductions

3) increase in labor productivity

4) profit from the sale of the enterprise's products

5) improvement of production technologies

6) issue and placement of shares of the enterprise

Explanation.

There are internal and external sources of cash flow. Internal sources are sources of cash receipts, which are formed at the expense of the results of entrepreneurial activity. This may be income from the sale of products, the sale of property. Gross profit is divided into two types of financing: reimbursement of production costs and residual (net) profit. Reimbursement of production costs is related financing, since the funds are allocated to certain areas of expenditure. Residual income is the profit that remains in the firm after taxes have been paid. Net income is used by the entrepreneur to pay for various expenses in the firm, except for expenses. Cash from the residual income is used to develop the business, to pay dividends, and to reward employees of the company. Internal sources of financing include investments of the founders of the company in the authorized capital, as well as funds received after the sale of the company's shares, the sale of the company's property, and the receipt of rent for the lease of property.

External sources are divided into two groups: debt financing, gratuitous financing. Grant financing is the representation of funds in the form of gratuitous charitable donations, assistance, subsidies. Debt financing refers to debt capital. Borrowed capital includes: short-term credits and loans, long-term credits and loans, accounts payable.

1) attracting loans - yes, that's right.

2) tax deductions - no, not true.

3) increase in labor productivity - no, that's not true.

4) profit from the sale of the company's products - yes, that's right.

5) improvement of production technologies - no, it is not true.

6) issue and placement of shares of the enterprise - yes, that's right.

Answer: 146.

Answer: 146

List three sources of business financing and illustrate each with an example. (Each example should be formulated in detail).

Explanation.

List any three sources of business financing, each of which is illustrated with an example. (Each example should be formulated in detail).

Explanation.

The response may include the following examples:

1) Part of the profit of the firm (internal source). For example, the owner of a car repair shop sent part of the profits to the purchase of new equipment;

2) Bank loan (external source). For example, the owner of a chain of grocery stores took out a bank loan and used it to buy a modern refrigeration unit;

3) State subsidy (external source). For example, a farmer received funds from the state small business support fund to purchase an additional batch of feed.

Other examples may be given.

Why is a large-scale expansion of the company's business not always economically feasible? Using the text, social science knowledge and facts of social life, give three explanations.

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings, wages accrued but not paid. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For a joint-stock company that has a stable position in its business and does not intend to significantly expand it with the attraction of significant funds, decisions on financial issues are made, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. External investors usually want to see detailed plans for how their funds will be used, and they also want to make sure that companies' investment projects will generate cash flows sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources.

(According to Z. Body, R. Merton)

What sources of business financing are indicated in the text? Specify two types. Based on the text, give two examples for each of them.

Explanation.

The correct answer must include the following items:

1) Types of sources:

Domestic financing;

External funding.

2) Two examples are given for each:

Domestic funding:

1) retained earnings;

2) accrued but not paid wages;

External funding:

1) funds of creditors and shareholders;

2) funds from the issue of bonds or shares.

Sources of internal and/or external funding may be specified in other formulations that are similar in meaning.

Based on social science knowledge, explain the meaning of the concept of "entrepreneurship". What two directions of the financial policy of a joint-stock company that does not plan a significant expansion of production are named in the text? What is the essential difference between the use of external financing and the use of internal financing considered by the authors?

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

The use of external financing makes the company closely dependent on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources / if the corporation attracts funds from external sources that may be needed for the large-scale expansion of its business, management decisions are more complex and require, accordingly, more time.

Answers to questions can be given in other formulations that are close in meaning.

Suggest why external investors are more skeptical of the firm's prospects for success than are its managers. What organizations can act as external investors (using social science, list any three types of such organizations)?

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

Managers are not liable for the company's debts, their task is to attract investors, so they give optimistic assessments of business prospects, and investors calculate possible risks, so their assessments are more skeptical;

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided among existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

3) in a situation of financial instability in the country, sharp fluctuations in the exchange rate of the national currency and low quotations of "blue chips", a large-scale expansion of business with the attraction of expensive loans may not be economically feasible. Other pertinent explanations may be given.

Based on social science knowledge, explain the meaning of the concept of "entrepreneurship". What two directions of the financial policy of a joint-stock company that does not plan a significant expansion of production are named in the text? What is the essential difference between the use of external financing and the use of internal financing considered by the authors?

Read the text and complete tasks 21-24.

When analyzing capital structure decisions, it is important to distinguish between internal and external sources of funding. Internal financing of the development of the company is provided by its income. It includes sources such as retained earnings, wages accrued but not paid. If the firm invests its profits in the construction of a new building or the purchase of equipment, then this is an example of internal financing. Corporate managers turn to external financing when they attract funds from creditors or shareholders. If a corporation finances the purchase of new equipment or the construction of an enterprise with funds from the issuance of bonds or shares, then this is an example of external financing.

The specifics of internal and external financing of the company's activities also affect the features of the financial decisions made. For a joint-stock company that has a stable position in its business and does not intend to significantly expand it with the attraction of significant funds, decisions on financial issues are made, as they say, in working order and almost automatically. In this case, the financial policy consists in pursuing, first of all, a well-defined dividend policy, establishing, for example, the regularity of payments to shareholders in the form of dividends of one-third (or another part) of profits. In addition, financial policy affects the maintenance of the bank's credit line, i.e. ensuring the established stable needs of the corporation in credit resources. It usually takes less time and effort for managers to make these kinds of internal funding decisions than it does for external funding; they do not require such careful consideration.

If a corporation raises funds from external sources that may be needed for a large-scale expansion of its business, management decisions are more complex and require a correspondingly large investment of time. External investors usually want to see detailed plans for how their funds will be used, and they also want to make sure that companies' investment projects will generate cash flows sufficient to cover costs and make a profit. They carefully study the plans of the corporation and are more skeptical about the prospects for success than its managers. Thus, the use of external financing puts the company in close dependence on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources.

(According to Z. Body, R. Merton)

What sources of business financing are indicated in the text? Specify two types. Based on the text, give two examples for each of them.

Explanation.

The correct answer must include the following items:

1) Types of sources:

Domestic financing;

External funding.

2) Two examples are given for each:

Domestic funding:

1) retained earnings;

2) accrued but not paid wages;

External funding:

1) funds of creditors and shareholders;

2) funds from the issue of bonds or shares.

Sources of internal and/or external funding may be specified in other formulations that are similar in meaning.

Suggest why external investors are more skeptical of the firm's prospects for success than are its managers. What organizations can act as external investors (using social science, list any three types of such organizations)?

Explanation.

The correct answer must contain the following elements:

1) guess, for example:

Managers are not liable for the company's debts, their task is to attract investors, so they give optimistic assessments of business prospects, and investors calculate possible risks, so their assessments are more skeptical;

(Other pertinent suggestions may be made.)

2) three organizations, for example:

Investment funds;

pension funds;

State.

Other organizations may be named (with varying degrees of specification).

Why is a large-scale expansion of the company's business not always economically feasible? Using the text, social science knowledge and facts of social life, give three explanations.

Explanation.

The following explanations can be given:

1) during a crisis and recession, when consumer demand is reduced, business expansion can lead to significant losses;

2) if the market is divided among existing companies, and a firm planning a large-scale business expansion does not have competitive advantages, then the expansion can lead to significant losses;

3) in a situation of financial instability in the country, sharp fluctuations in the exchange rate of the national currency and low quotations of "blue chips", a large-scale expansion of business with the attraction of expensive loans may not be economically feasible. Other pertinent explanations may be given.

Explanation.

The correct answer must contain the following elements:

1) Explanation of the concept, for example:

Independent initiative activity aimed at the systematic receipt of profit, which is carried out at your own peril and risk by a person registered in the manner prescribed by law.

2) the answer to the first question (two directions):

Carrying out a certain dividend policy;

Maintaining the bank's credit line;

(If students indicate only one of the two directions, the answer to the first question is not counted in the assessment.)

3) answer to the second question (difference):

The use of external financing makes the company closely dependent on the capital market, access to which is associated with higher requirements for the investment plans of the corporation than the use of internal financing sources / if the corporation attracts funds from external sources that may be needed for the large-scale expansion of its business, management decisions are more complex and require, accordingly, more time.

Answers to questions can be given in other formulations that are close in meaning.

What characteristic feature (problem) of small business is called by the authors? What two explanations for the existence of this problem do they indicate?

Read the text and complete tasks 21-24.

()

Based on social science knowledge, explain the meaning of the concept of "credit". What are the reasons that prevent getting a loan from a bank are mentioned in the text? What additional sources of funding are identified in the text (specify two sources)?

Explanation.

1) The meaning of the concept is explained, for example:

Credit - sum of money issued by a credit institution to the borrower under the terms of urgency, repayment, payment and security.

2) three reasons are given:

The problem of collateral and guarantees;

High interest rates;

Design problems.

3) two other sources of financing for small businesses are indicated:

Entrepreneurship Support Funds;

State financial support.

Explanation.

The correct answer should include the following items:

Ensuring a reduction in the interest rate on loans;

Legislative restriction of the intervention of law enforcement agencies in business activities;

Financial and credit support for small businesses;

2) independently given measures to support small businesses:

Compensation for part of the implementation costs the latest equipment, for example, energy-saving technologies;

Provision on preferential terms of advertising space owned by the state.

Other measures may be independently given.

Explanation.

The correct answer should include the following items:

1. Three explanations are named:

Small business creates the necessary atmosphere of competition;

Small business is the main source of the formation of the middle class;

Small businesses are able to quickly respond to any changes in market conditions.

Other explanations may be given.

2. An example is given:

The necessary competition for large network catering enterprises is created by small family cafes and confectioneries popular in Moscow, which are small businesses (small businesses create the necessary atmosphere of competition).

Another example can be given.

Explanation.

The correct answer must contain the following elements:

1) a characteristic feature is named:

The problem of financing small enterprises;

2) two explanations are named:

Small enterprises have an insufficient amount of start-up capital;

Small businesses are experiencing constant difficulties with the accumulation of funds and their investment in business.

Name three measures that the authors of the text indicate as necessary to support small businesses. Based on the knowledge of the social science course, give two measures to support small businesses that are not listed in the text.

Read the text and complete tasks 21-24.

As is known, one of characteristic features small businesses is the problem of their financing. As a rule, they have an insufficient amount start-up capital and experience constant difficulties with the accumulation of funds and their investment in business. One of the solutions to this problem is financial support from banks. Among the main reasons preventing obtaining a loan from a bank, 42% of the interviewed entrepreneurs highlight the problem

collateral and guarantees, 31% - high interest rates, 26% - problems with registration. main reason 42% of respondents point to the lack of access to relevant information as an obstacle to obtaining a loan from entrepreneurship support funds. At the same time, almost 70% noted that they need real state support.

First of all, entrepreneurs attribute their expectations to the reduction of the tax burden, the creation of conditions for access to financial resources, simplifying reporting. However, most believe that the likelihood of receiving such assistance is low. In our opinion, within state support small business lending system is necessary to provide lower interest rates. In addition, 55% of respondents consider it necessary to provide state guarantees for loans. At the same time, 40% of respondents believe that the volume of state guarantees for loans to small and medium-sized businesses should be about 50% of the loan amount.

A common problem is the lack of certainty of the requirements of the legislation, which creates conditions for their arbitrary interpretation. We believe that intervention law enforcement in entrepreneurial activity is unreasonably high, regardless of the type of activity, it is necessary to legally limit their interference. In our opinion, the most important area is also financial and credit support for small businesses.

(according to L. A. Mosina, Yu. S. Koroleva))