Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 18.4, Problem 18.4BQ
Summary Introduction
To discuss: The benefit that stores will get when they borrow finance from commercial bank and other lender.
Introduction: Commercial bank is a financial body which accepts deposit from general public and grants loan to general public for productive use.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What is the effective borrowing cost?
What is meant by Regular Business Loans?
Think about the factors involved in each of the situations below. Solve the problems by applying the concepts in Chapter 18. Where can your firm find financing? Prepare your initial discussion by providing a detailed response with at least three paragraphs.
Your company needs a new copy machine quickly. The high-volume, multifeatured model you want costs $3,000, but your small business doesn’t have that much cash on hand right now and doesn’t want to borrow at this time.
Chapter 18 Solutions
Understanding Business
Ch. 18.1 - Prob. 18.1AQCh. 18.2 - Prob. 1TPCh. 18.2 - Prob. 2TPCh. 18.2 - Prob. 3TPCh. 18.2 - Prob. 4TPCh. 18.3 - Prob. 18.3AQCh. 18.3 - Prob. 1MEDCh. 18.3 - Prob. 5TPCh. 18.3 - Prob. 6TPCh. 18.3 - Prob. 7TP
Ch. 18.3 - Prob. 8TPCh. 18.4 - Prob. 18.4AQCh. 18.4 - Prob. 18.4BQCh. 18.4 - Prob. 18.4CQCh. 18.4 - Prob. 9TPCh. 18.4 - Prob. 10TPCh. 18.4 - Prob. 11TPCh. 18.4 - Prob. 12TPCh. 18.5 - Prob. 18.5AQCh. 18.5 - Prob. 18.5BQCh. 18.5 - Prob. 13TPCh. 18.5 - Prob. 14TPCh. 18.5 - Prob. 15TPCh. 18.5 - Prob. 16TPCh. 18 - Prob. 1CECh. 18 - Prob. 2CECh. 18 - Prob. 3CECh. 18 - Prob. 4CECh. 18 - Prob. 1CTCh. 18 - Prob. 2CTCh. 18 - Prob. 3CTCh. 18 - Prob. 2DCSCh. 18 - Prob. 3DCSCh. 18 - Prob. 4DCSCh. 18 - Prob. 5DCSCh. 18 - Prob. 1PPTCh. 18 - Prob. 2PPTCh. 18 - Prob. 3PPTCh. 18 - Prob. 4PPTCh. 18 - Prob. 1VCCh. 18 - Prob. 2VCCh. 18 - Prob. 3VC
Knowledge Booster
Similar questions
- Discuss the following Is it wrong to borrow or charge interest for business? How does the Bible relate to the subject of charging the various types of interest? Exodus 22:25, Exodus 22:25, Deuteronomy 23:19-20.arrow_forwardWhat components would an investor or loan officer believe that are important? Please explain your response.arrow_forwardHow do low interest rates affect a business? Consumer demand slows down. Firms tend to defer investments until rates rise. Business credit is harder to obtain. Firms can easily borrow money to finance future growth.arrow_forward
- List down the all the sources of money you had.the exact amount and date you received it.arrow_forwardwhat are the alternatives for someone who wants to keep running their business without having standard business credit.arrow_forward1. How does interest rate affect the transfer of funds from the lender to the borrower?2. How do taxes affect a business firm?arrow_forward
- What goes into making a credit score? What factors are most important? Please explain why the credit scoring agency weights these factors the way they do. For example, why is it that new credit accounts being opened are small while payment history is extensive? Does it make sense?arrow_forwardConsider a business idea that you could imagine starting up in your local area. Explain what source or sources of funding might be available to you, approximately how much money you think you would need, and why you would choose that particular source or sources. How would you convince the potential funder or funders that they should invest in your idea?arrow_forwardWhy is credit important to businessarrow_forward
- Explain the process of factoring. What is the value of factoring to a company that sells its receivables?arrow_forwardDo discount cash flow methods remove market noise; that is, non-economic changes is asset, liability and equity Historic values?arrow_forwardWhy are you borrowing money? For what?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Foundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning