Question

Amanda is short of funds to buy machinery for her new business. She approaches her friend, who works in a bank, for help. Amanda gets the

required funds after accepting the bank's terms and conditions. One of the conditions states that she needs to repay the amount in two years.
Which source of capital has Amanda received here?
A.bond
B. loan
C.equity share
D. preference share

Answer 1

Loan (B)

Step-by-step explanation:

I took the test and got it right!

Answer 2

Option B: Loan

is the correct answer.

Step-by-step explanation:

Loan or Working Capitals can be defined as the financial products that are organised by the financial institutions such as banks to offer help in business. The need for loan arises for the time which is taken by people to convert inventory into cash.

Similarly, Amanda's source capital is also loan as she has given the condition to return the loan amount within the period of 2 years.

On the other hand, bond and shares does not fall under this category.

I hope it will help you!