Finance Flashcards
What is the role of the finnace department
Pay wages and salaries
prepare cash budgets
pay bills such as electricity
What is a bank loan
Money borrowed from the bank for more than a year
What si the advanatge of a bank loan
Paid back in instalments
What si the disadvanatge of a bank loan
Interest has to be paid
What is a governemnt grant
When money si received formt he goverenment to help set up your business
What is the advanatge of a government grant
Does not have to be paid back
What is the disadvanatge of a government grant
Mya have to set up in a particular area
have to meet criteria otherwise the grant may have to be repaid
What is a mortgage
Obtained for purchasing property and usually paid back over 25 years
What si the advanatge of a mortgage
Paid back in monthly installments
What is the disadvanatge of a mortgage
Interest is charged on the amount borrowed
if installments not paid preperly can be reposessed
What si the advanatge to a loan form friends
No or little inetrest is normally charged
repayment time is flexible
What si the disadvanatges to gettinga loan from friends and fmaily
Cna cause disagreement
limited amounts can be borrowed
What is a leasing
When you pay a monthly amount to use a product or property. You will never own the product
What are te adavantages to a leasing
When the goods start to get old the lease will be over and you then start a new lease
you are not responsible for repaids
What is the disadvanatge to a lease
Goods will never be yours
What is a hire purchase
When goods are purchased by a deposit and the remaining amount is paid for in installments
What si the advanatge to hire purchase
Receive goods immediately
goods paid for in instalments
What are the disadvanatges to a hire purchase
Dont own goods until final payment i smade
deposits often required
if installmnets missed theng goods can be reclaimed
What is a loan from princes trust
Provide loans to new business start ups
What are the advanatges to a loan form princes trust
Low rates of interest given
advice and support are also given to new businesses
What is the disadvanatge to a loan form princes trust
Conditions are often set
What si retained profits
Unused profits from previous years
What are the advanategs to retained profit
Does not have to be paid back
no interest rates have to be given
What is the disadvanatge to retained profits
Can only be used once
