Short term and long term financing

What is trade credit?

• this is when suppliers supply goods to the trade on credit terms

• wages

• single-payment loans

• collaterals

Which is true about Instalment credit

• Hire purchase is not an example of instalment credit

• The hirer is able to use the item immediately, then pay for it over time from the profits he or she is able to make from using the item

Who is a Angel investor?

• An individual investor who provides capital for a business/es start-up usually for exchange of convertible debt or ownership equity

• B. Factoring is a financing method in which a business owner loans accounts receivables at a discount to a third party for immediate cash.

• C. Factoring is a financing method in which a business owner buys accounts receivables from a discount to a third party.

• D.Factoring is a financing method in which a business owner trafes accounts receivables to a third party for goods.

Which of the following is true about Crowd Funding?

• Crowdfunding occurred in 1998

• Crowdfunding occurred in 2008

• Crowdfunding is a way to raise funds for a specific cause by asking a large number of people to donate small amounts of money.

• Crowdfunding is a way to decrease loans for a specific cause by asking a small number of people to donate money

what is a promissory note?

• units of equity ownership in a corporation

• a written promise by one person to pay a specified amount of money to another on demand or at a given future date

• something which entitles the holder to a fixed dividend, whose payment

• the value of the shares issued by a company

What are the three types of commercial banks?

• Public Sector, Private Sector and Foreign Banks

• First Global Bank, Foreign Banks and CIBC First Caribbean

• ScotiaBank Jamaica, Public Sector and Citibank

• National Commercial Bank, Sagicor Bank and JMMB Bank

What Are Mortgages?

• Hire purchase agreement between you and a furniture store

• A car note

• A legal agreement by which a bank lends money at interest in exchange for taking title of the debtors property

• A Lease

Which of the following is a type of factoring

•  Full Factoring

• Maturity Factoring,

• Undisclosed Factoring

• all of the above

Which of the following is not a Short- term loan

• Venture Capitalist

• Mortgages

• Installment credit

• Commercial bank