Interests/concerns

Question 1

What is needed for a business to acquire assets?

Answer 1

Funding (known as capital)

Funding refers to the money required for a business to operate and grow.

Question 2

What is the term used for money in the context of business funding?

Answer 2

Capital

Capital is essential for businesses to invest in assets and operations.

Question 3

Who can provide funding to a business?

Answer 3

Owner and other institutions

Other institutions can include banks and credit organizations that grant credit to businesses.

Question 4

What is the owner’s interest in the assets of the business called?

Answer 4

Owner’s equity

Owner’s equity represents the owner’s claim on the assets after all liabilities have been deducted.

Question 5

What is the interest of institutions that provide funding to a business referred to as?

Answer 5

Liability

Liabilities represent the obligations of the business to repay borrowed funds.

Question 6

In what forms can funds be provided to a business?

Answer 6

Cash and/or other assets

Businesses can receive funding in various forms, including physical assets or financial resources.

Question 7

Fill in the blank: Interest in the assets of the business is obtained when funds are given to the business, resulting in the owner’s interest known as _______.

Answer 7

Owner’s equity