About business Flashcards
Collateral, factors influencing location, planning & operating, Government regulations
What is Collateral?
Refers to things of value put (pledged) as security for repayment of a loan.
List examples of Collateral:
Land, stocks, bonds & cash, motor vehicles, life insurance and machinery.
What is collateral to the lender?
The collateral acts as security incase the borrow fails to repay the loan.
What is collateral to the borrow?
It allows his/her access to funds, he/she would not have without that collateral.
What are the factors that influence the location of a business?
Closeness to raw material/where they enter the country, market pull, access to transportation, closeness to sources ( fuel, power and water), climatic conditions and availability of land and labour.
What are the levels of planning?
Short term, Medium term and Long term planning.
What is Short term planning?
Are those to be accomplished within the day, week, or within a short period time less than one year.
What is Medium term planning?
Are those to be accomplished within a year or two.
What is Long term planning?
