Im Looking For A Guy In Finace 🧿 Flashcards
1
Q
Working capital
A
WORKING CAPITAL= CURRENT ASSETS - CURRENT LIABLITIES
2
Q
Equity finance
A
Permanent finance raised by companies through the scale of ownership of the business.
3
Q
Sale of assets disadvantage
A
Opportunity costs of selling assets that can be used in the future
4
Q
Reduction in working capital financing disadvantage
A
Firms liquidity may be reduced to a risky level.
5
Q
Bank overdraft disadvantage
A
1) amount can vary from day to day.
2) high interest rates.
3) Banks can call in an overdraft and force the firm to pay on short notice
