What term refers to how an enterprise secures the funds necessary for operations?

• A. Financial risks
• B. Marketing strategies
• C. Sources of finance
• D. Operational costs

Answer: (C)

The term that refers to how an enterprise secures the funds necessary for operations is "sources of finance." This encompasses the various methods through which businesses can obtain the funds required to support their activities, such as starting a new venture, funding ongoing operations, or expanding their existing business. Sources of finance can include loans from banks, investments from venture capitalists, personal savings, or revenue generated from sales.

Understanding sources of finance is crucial for enterprises as it impacts their ability to grow, manage cash flow, and achieve strategic objectives. Effective financial management involves assessing different sources, considering the cost of capital, repayment terms, and the implications for control over the business.

In contrast, financial risks refer to the potential losses that an enterprise may face due to financial uncertainty, marketing strategies involve the plans and tactics used to promote and sell products or services, and operational costs relate to the expenses incurred during the day-to-day running of the business. Each of these concepts plays a role in the overall functioning of an enterprise, but they do not specifically address the methods of securing funds.