click below
click below
Normal Size Small Size show me how
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 |