Sue is starting a personal wellness business.She is uncomfortable with making a loan application to a bank and decides to use her existing credit card for any short-term financial needs.Her dad suggests this is a bad idea because
A) Sue may well use her entire credit limit for business financing and not be able to use the credit card for personal purchases.
B) the interest rate on any outstanding balance,any amount not repaid when the next credit card statement arrives,is usually significantly higher than the interest on a bank loan.
C) Sue will not be able to claim any amounts charged on her credit card as expenses of the business.
D) suppliers do not allow credit cards to be used to pay for purchases.
Correct Answer:
Verified
Q229: _ offer short-term secured loans to high-risk
Q230: Manitoba Supply offers their customers trade credit
Q231: Which of the following is the most
Q232: Category Development,a leader in residential housing,recently negotiated
Q237: Deltoid Aluminum uses its stock of unsold
Q243: Since commercial finance companies offer loans to
Q246: Which of the following organizations would be
Q252: Selling accounts receivable to obtain short-term funds
Q257: Vitale Jewelers obtains needed short-term funds by
Q269: Admiral Electric is a widely known,successful manufacturer
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents