What is a disadvantage of trade credit in the case of a seller?
The disadvantage of trade credit in the case of a seller is that trade credit will result in bad debts.... View Article
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What is a disadvantage of trade credit in the case of a buyer?
The disadvantages of a trade credit are as follows: Loss of goodwill High price of raw materials. Losing the supplier... View Article
How does trade credit work?
Trade credit is a pre-decided arrangement between the buyers and sellers on the duration of the payment. Here the buyer... View Article
What is trade credit?
Trade credit refers to an arrangement where customers are allowed to purchase goods without the requirement of paying cash at... View Article
What is the difference between bond and debentures?
The difference between bonds and debentures is that bonds are loans that are backed by a physical asset or collateral... View Article
What are the different types of bonds?
The different types of bonds are: Fixed rate bonds Floating rate bonds Inflation linked bonds Perpetual bonds Bearer bonds Subordinated... View Article
What type of instrument is debenture?
Debenture is a type of debt instrument. Also read: Redemption of Debentures Types of Debentures Learn about more commerce questions... View Article
Why is it risky to invest borrowed money rather than use your own money in your business?
It is risky to invest borrowed money in business because although there is a chance of greater gain, there is... View Article
What are the examples of the owner’s fund?
Examples of owner’s funds are retained earnings and equity shares. Also read: Difference Between Fixed Capital and Working Capital Intangible... View Article
What is the owner’s fund?
Funds that are invested by the owners of a firm are called the owner’s fund. These include the profits that... View Article
Where does borrowed money go on a balance sheet?
Borrowed money can be of long term or short term and are classified as long term liabilities or short term... View Article
What is another word for borrowed money?
Borrowed money can also be called debt capital or loan capital. Also read: Difference Between Fixed Capital and Working Capital... View Article
Is borrowed money a liability?
Yes, borrowed money is a liability as it needs to be repaid within a certain time period along with interest... View Article
What do you mean by borrowed funds?
Borrowed funds are funds that are obtained from banks, financial institutions or any individual for the purpose of investing in... View Article
What are owner funds and borrowed funds?
Owner funds are those funds that are invested in the business by the owners, it is also called shareholder’s equity.... View Article
Is Borrowed funds an asset?
Borrowed funds can result in increase in the assets of a business, at the same time it results in increase... View Article
What are the advantages of issuing global depository receipts?
The advantages of issuing global depository receipts are as follows: Foreign investors find it easier to invest in companies located... View Article
What are depository receipt fees?
Depository receipt fees are charges that are levied by the depository bank for keeping an inventory of non US shares,... View Article
What are different types of depository receipts?
The different types of depository receipts are: ADR or American Depository Receipts GDR or Global Depository Receipts IDR or Indian... View Article
What are the three main functions of a business?
Three main functions of a business are: Operations Finance Marketing Also read: Sources of Business Finance Meaning Nature and Types... View Article
