Test: Resource Mobilization- 2 - Commerce MCQ

Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or cheque payments. Trade credit is a helpful tool for growing businesses, when favourable terms are agreed with a business's supplier.
For example, a customer is granted credit with terms of 4/10, net 30. This means that the customer has 30 days from the invoice date within which to pay the seller.
Trade credit extended to a customer by a firm appears as accounts receivable. Browse hundreds of guides and resources.

The Pre-commercialization Phase involves the transition from design and development, and validation, to the execution of the launch.  However, the Pre-commercialization Phase is critical for large, complex programs with many elements that have to be timed perfectly at launch.

An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur's family and friends.
For example, let's say that John Doe has an idea for a way to power widgets with small, flexible solar panels rather than electricity. He needs to build a prototype and form a business in order to capitalize on the idea and begin selling the product. John finds Ralph Jones, an angel investor.

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In 1988, Sebi was constituted as the regulator of capital markets in India. Initially, Sebi was a non-statutory body without any statutory power. Following the passage of the Sebi Act by Parliament in 1992, it was given autonomous and statutory powers.
It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.

• Financial intermediaries move funds from parties with excess capital to parties needing funds.
• The process creates efficient markets and lowers the cost of conducting business.
• For example, a financial advisor connects with clients through purchasing insurance, stocks, bonds, real estate, and other assets.

• Volume is the number of shares of a security traded during a given period of time.
• Volume is an important indicator in technical analysis because it is used to measure the relative significance of a market move
• Calculating volume is simply the total amount of shares traded for the day, which includes both buy and sell orders.

Financing for the start-up phase involves bridge financing from the time the pre-launch phase is funded until operations commence, sufficient working capital for the smooth operation of the business, funding of any losses during the start-up phase and contingency funds in case of an unexpected interruption in the start-up process. Funding for the pre-launch stage and the start-up phase may occur at the same time.

The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued.

• The term seed capital refers to the type of financing used in the formation of a startup.
• Funding is provided by private investors usually in exchange for an equity stake in the company or for a share in the profits of a product.

• Angel investors are wealthy individuals who provide capital to help entrepreneurs and small businesses succeed.
• These individuals want to invest in up-and-coming new companies not only to earn money, but also to provide a resource that would have been helpful to them in the early stages of their own businesses.

Technically, venture capital (VC) is a form of private equity. The main difference is that while private equity investors prefer stable companies, VC investors usually come in during the startup phase. Venture capital is usually given to small companies with incredible growth potential.

Basically, the Angel investors are investing larger sizes, later stages and higher valuations. That all indicates that there is less risk in these investments, because the Angel groups are moving downstream a little bit. There's less risk, accordingly, you could expect lower returns.

• Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.
• Venture capital generally comes from well-off investors, investment banks, and any other financial institutions.