financing the business

Question 1

• what are the two types of how to buy?
• definition for each?
• what type of finance is it?

Answer 1

1) mortgage (external finance) borrowing money
2) personal savings ( internal finance) using money within the bus

Question 2

what factors can affect when buying?
list 6

Answer 2

1) income
2) criminal records (background checks)
3) number of dependants
4) expenditure
5) credit rating
6) age

Question 3

why do bus need finance?
list 4

Answer 3

1) for suppliers
2) expanding bus
3) replace/upgrade equipment/machine
4) training