In your own understanding, can you utilize credit cards as a financial leverage in your own business? What are the advantages and disadvantages of using credit cards as your financial leverage in the business?
In your own understanding, can you utilize credit cards as a financial leverage in your own business? What are the advantages and disadvantages of using credit cards as your financial leverage in the business?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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In your own understanding, can you utilize credit cards as a financial leverage in your own business?
What are the advantages and disadvantages of using credit cards as your financial leverage in the business?
Expert Solution
Step 1: Introduction of the question:
A credit card is a financial tool that allows individuals to borrow funds from a financial institution, typically a bank, to make purchases or transactions and it enables cardholders to access a line of credit up to a predetermined limit, which they can use to pay for goods and services. The cardholder then repays the borrowed amount, either in full by the due date to avoid interest charges or in installments over time. Credit cards offer convenience, flexibility, and the ability to build a credit history.
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