$1\mathrm{.}6$ What does the risk$-$return principle state?

$(1)$

a$.$ The higher the risk, the lower the required rate of return

b$.$ The higher the risk, the higher the required rate of return

c$.$ The lower the risk, the higher the required rate of return

d$.$ The lower the risk, the lower the required rate of return

$1\mathrm{.}7$ What is the main advantage of debt financing?

a$.$ It does not affect ownership of the business

b$.$ It provides equity financing without interest costs

c$.$ It is easily available for small businesses

d$.$ It does not require collateral or security

$1\mathrm{.}8$ What is an advantage of trade credit?

$(1)$

a$.$ It provides interest$-$free financing

b$.$ It requires collateral or security

c$.$ It is a low$-$cost source of funds

d$.$ It affects ownership of the business

$1\mathrm{.}9$ What is the purpose of factoring or invoice discounting?

$(1)$

a$.$ Obtaining trade credit from suppliers

b$.$ Selling debts to a third party for cash

c$.$ Acquiring assets through leasing or hire purchase

d$.$ Investing in long$-$term projects or investments

$1\mathrm{.}10$ What is the main disadvantage of private equity financing?

$(1)$

a$.$ It requires collateral or security

b$.$ It involves high interest costs

c$.$ It affects ownership and profits

d$.$ It is difficult to find interested investors