Podcast
Questions and Answers
What is a key difference between a business credit card and a personal credit card?
What is a key difference between a business credit card and a personal credit card?
- Business credit cards require a business bank account, while personal credit cards do not. (correct)
- Personal credit cards offer interest-free credit for up to 56 days, while business credit cards do not.
- Personal credit cards come with additional offers like airmiles and cashback, while business credit cards do not.
- Business credit cards have higher interest rates than personal credit cards.
How does a bank overdraft differ from a bank loan?
How does a bank overdraft differ from a bank loan?
- A bank overdraft allows for quick access to funds, while a bank loan does not.
- Bank overdrafts are cheaper than bank loans due to their fixed interest rates.
- Bank loans require repayment whenever the bank demands, unlike bank overdrafts. (correct)
- A bank loan accrues interest each day, unlike a bank overdraft.
What is a characteristic of a cash advance that makes it more flexible than a credit card?
What is a characteristic of a cash advance that makes it more flexible than a credit card?
- Cash advances are linked to future income, making payback more flexible. (correct)
- Cash advances have lower interest rates compared to credit cards.
- Cash advances require collateral while credit cards do not.
- Cash advances do not have late payment charges like credit cards.
Why is it important for business owners to carefully monitor employee spending and access to cards?
Why is it important for business owners to carefully monitor employee spending and access to cards?
In what way does the total amount to be paid back for a cash advance differ from a bank loan?
In what way does the total amount to be paid back for a cash advance differ from a bank loan?
What are some advantages of using internally generated capital for funding?
What are some advantages of using internally generated capital for funding?
Why might startups and small companies struggle to self-finance large investments or rapid growth?
Why might startups and small companies struggle to self-finance large investments or rapid growth?
What is the key characteristic of venture capital funding for startups?
What is the key characteristic of venture capital funding for startups?
How do angel investors differ from venture capitalists in terms of the amounts of capital they offer?
How do angel investors differ from venture capitalists in terms of the amounts of capital they offer?
Explain the difference between grants and traditional forms of funding in terms of repayment obligations.
Explain the difference between grants and traditional forms of funding in terms of repayment obligations.
