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CIPS Exam L3M1 Topic 4 Question 6 Discussion

Actual exam question for CIPS's L3M1 exam
Question #: 6
Topic #: 4
[All L3M1 Questions]

Sources of finance for a private sector entity primarily include (select all that apply):

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Suggested Answer: B, C, D

Sources of funds for private sector commonly include revenues from sales, shareholders and long-term loans. Taxpayers would not normally be thought of as a source of funds for private sector, alt-hough in recent Coronavirus times, in some countries, such as the UK, businesses have received considerable support. But that is abnormal.

Short-term sources such as overdrafts are not to be relied upon on a regular or long-term basis.


by Alaine at Mar 18, 2024, 01:59 AM

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Ezekiel
6 months ago
That's correct, Grover. Taxpayers do not provide direct finance to private sector entities.
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Grover
7 months ago
I believe taxpayers are not a source of finance for a private sector entity.
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Willard
7 months ago
I agree with you, Ezekiel. Sales revenues can also be a source of finance for a private sector entity.
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Ezekiel
7 months ago
I think sources of finance for a private sector entity include Long-term bank loans and Shareholders' funds.
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Izetta
7 months ago
Yes, sales revenues are crucial for financing operations and growth.
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Dorsey
8 months ago
Sales revenues should also be considered as a source of finance, right?
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Maryanne
8 months ago
I agree with Virgilio, shareholders' funds are an important source of finance.
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Virgilio
8 months ago
I think sources of finance for a private sector entity include shareholders' funds, definitely.
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