Why would a business prepare a cash flow?

Short term source of finance will take up to 1 year to repay.

Medium sources of finance can take from 1 - 10 years to repay.

Which of these is NOT a short term source of finance?

Which of these is a disadvantage of a credit card?

The business raises money by selling its debtors to a bank for cash. Rather than waiting for the debtors to pay at a later date the business gets money now, this is _______.

This involves buying an asset and taking delivery of it now but paying for it in instalments. The household/business will become the legal owner.

The household borrows money from a bank which is repaid with interest over a period of 1-5 years

Example of a Receipt for a Household would be..

Which of these is a payment for a household?

long-term (usually 20-30 years) loan used to buy or renovate a house?

are the profits that the business has saved up to reinvest in the firm. It is the savings for a business.

This is money that the household does not spend and is set aside for future use. It allows them to purchase assets without the need for borrowing

A Debenture is a long-term loan to a company, secured on the company’s assets

This is where the business sells shares to investors to raise capital.

A financial institution will judge a loan application on the following criteria.. which of these IS not one of them?

the employee’s net wages are paid directly into their account is..

Businesses and households should consider different aspects when choosing a source of finance. Which of these is not a consideration?

_________ instructs the bank to pay a fixed sum of money on a fixed date into another’s account.

The employee’s net wages are paid directly into their account.

SEPA stands for Single Euros Payment Area.