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Finance ch9
Question | Answer |
---|---|
short term gfinance duration | 0-1 year |
medium term finance duration | 1-5 years |
long term finance duration | 5+ years |
uses of short term finance | purchase of stock payment of wages |
uses of medium term finance | office equipment |
uses of long term finance | purchase of land and buildings |
short term finance options | Bank overdraft, credit cards, unpaid expenses creditors |
medium term finance options | term loan, leasing, hire purchase |
long term finance options | house mortgage, savings, long term loan |
"leaning on trade" | Not paying your suppliers on time |
Mortgage | loan to buy your house |
venture capital | long term finance where banks offer both loan and capital money |
sale and leaseback | sell asset and lease it back |
collateral/security | what you offer in return for shares |
equity capital | ordering share capital long term |
dividend | what you get in return for being a long term investor |
leasing | renting not owning, eg. photocopier |
APR | Annual Percentage Rate |