Write TRUE or FALSE after each of the following statements:
1 - Leaving Cert Business - Question 8 - 2012
Question 8
Write TRUE or FALSE after each of the following statements:
1. The share of profits received by a Shareholder is known as a dividend.
2. Hire Purchase is an example... show full transcript
Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements:
1 - Leaving Cert Business - Question 8 - 2012
Step 1
1. The share of profits received by a Shareholder is known as a dividend.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
TRUE. A dividend is indeed a distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or additional shares.
Step 2
2. Hire Purchase is an example of short term finance.
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
FALSE. Hire purchase is generally considered a form of long-term finance because it involves an extended payment plan that lasts for several months or even years.
Step 3
3. Trade Credit is an example of long term finance.
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
FALSE. Trade credit is typically a form of short-term financing where suppliers allow buyers to purchase goods and pay for them later, usually within a period of up to 90 days.
Step 4
4. Privatisation refers to the Government selling state-owned enterprises to private investors.
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
TRUE. Privatisation involves transferring ownership of a business from the public sector (government) to private individuals or organizations.
Step 5
5. Availing of a Bank Overdraft facility incurs an interest charge.
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
TRUE. Using a bank overdraft facility usually involves paying interest on the amount drawn beyond the available balance.
Join the Leaving Cert students using SimpleStudy...
