Which ONE of the following most appropriately describes forfeiting?
(A) It is a method of providing medium-term export finance
(B) It provides long-term finance to importers
(C) It provides equity finance for the redemption of shares
(D) It is the surrender of a share because of the failure to make a payment on a partly-paid share
Which of the following is not a method used for raising finance to fund export sales?
(A) Bills of exchange
(B) Credit insurance
(C) Documentary credits
Which of the following would NOT be regarded as a source of short-term finance:
(A) Trade credit from suppliers
(B) Treasury bills
(C) Factoring of trade receivables
(D) Bank overdraft
List six sources of short-term investments.
In no more than 40 words, define the meaning of ‘yield to maturity’.
(A) Explain the main sources of short-term and medium-term funds. (8 marks)
(B) Discuss a situation where it is better to obtain overdraft facilities rather than a term loan. (6 marks)
(C) ‘Delaying payment to suppliers of goods and services is always a cheap form of borrowing funds.’ Discuss this statement.