Private Equity Financing

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.

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.

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.

To ensure employees do not use the cards for personal expenses. Signup and view all the answers

The total amount for a bank loan is fixed, while for a cash advance it varies based on income. Signup and view all the answers

Simplicity, autonomy, less dilution of ownership Signup and view all the answers

Generating sufficient retained earnings may be challenging for startups and small companies. Signup and view all the answers

Venture capital firms typically take equity stake positions in return for their investment. Signup and view all the answers

Angel investors tend to offer smaller amounts of capital compared to venture capitalists. Signup and view all the answers

Grant recipients aren't obliged to repay the funds unless specific conditions outlined in the agreement fail to meet. Signup and view all the answers

Questions and Answers