fiance

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what is a bank loan?
a loan from the bank with interest added on
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what does owners funds mean?
is money put into a business by its owner or owners
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what is "interest"?
is a payment made in order to borrow money. it means a business pays back more than it borrows.
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what are mortgages?
are loans from banks and
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What is an overdraft?
give entrepreneurs and business the right to borrow variable amounts of money uo to a agreed limit
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what is hire purchase?
this is a method of purchasing assets and paying in instalments. it is really special form of a loan. hire purchase can be an expensive way of buying something and the business will not own the item until it is completely paid for.
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is a bank loan a source of fiance?
yes
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what are the advantages form a loan from friends and family?
pay no interest and can have a long period of time to payback
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why do businesses need to raise fiance
A new business will need fiance to purchase a range of items that are essential if it is to be able to start trading
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Other cards in this set

Card 2

Front

what does owners funds mean?

Back

is money put into a business by its owner or owners

Card 3

Front

what is "interest"?

Back

Preview of the front of card 3

Card 4

Front

what are mortgages?

Back

Preview of the front of card 4

Card 5

Front

What is an overdraft?

Back

Preview of the front of card 5
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