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6. What is an advantage of credit cards?
- allows a business to spread payment after a deposit is payed
- interest free
- convenient and flexible
- cheap way of raising finance
7. What is an overdraft?
- money given to you by the bank
- profit that has not been returned to the bank
- the ability to withdraw more money from a bank account than you actually have
- when you are granted money from the bank
8. What is a disadvantage of a bank loan?
- Interest has to be paid on the amount borrowed
- a business will know exactly what it has to pay each month
- more expensive than a hire purchase
- its an internal source of finance
9. What is an example of short term finance?
- bank overdrafts
- venture capitalist
- mortgages
- debentures
10. What is hire purchase?
- money that can be used to run day to day wages
- buying specific goods with a loan, often provided by a finance house
- profit that has not been returned to the owners
- a set amount of money borrowed from the bank and paid back over a period of time
11. What is sales of assets?
- selling the businesses assets to raise finance
- money that can be used to meet day to day wages
- profit that has not been returned to the owners
- buying specific goods with a loan