Why might a business get a loan? Buy inventory Pay its taxes Buy a yacht Pay off another loan Any of the above

Q: Why some entrepreneurs are hesitant to avail of commercial bank loans? (b) Why some of them resort…

A: To start a business, some amount of capital is needed beyond the owner's capital. Commercial…

Q: If a friend who’d never heard of amortization before asked you to explain how loan payments work,…

A: Amortization is a technique used in accounting to decrease the book value of such a loan or…

Q: Going to a bank and applying for a mortgage loan would be an example of what type of financing?…

A: A mortgage is a contract between you and a lender that provides the lender the right to repossess…

Q: Briefly describe something about paying off loans

A: There are a few things to consider when paying off loans. First, you need to consider the interest…

Q: Which of the following is true of an unsecured loan? A. They are exclusively for cars, houses, and…

A: Loan can be defined as money that somebody lends other person in exchange of some interest that is…

Q: What is the difference between a credit sale (with a higher price as compared to the cash sale) and…

A: The amount of Sales made in credit has to be collected after certain period of time. In case of cash…

Q: What is the difference between a line of credit and a short-term loan?

A: Short term loan:   A loan is borrowed money that is to be paid back along with the interest. A…

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: How do trade-ins and sales taxes come into play when purchasing a car?

A: Taxes: Monetary charges imposed on individuals or legal entities by a government in order to fund…

Q: What does “assignment” mean and why would a lender want to assign a mortgage loan?

A: Mortgage assignments refer to a document that shows that a mortgage is transferred from the original…

Q: credit cards O Personal Loans O Consolidated Loans O Home Equity Loans O Student Loans use the…

A: A loan is a sum of money that is borrowed from a lender with the expectation that it will be paid…

Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…

A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…

Q: Student Loan. Is it worth it?

A: A loan suggests a borrowing by the student to finance the study costs.

Q: What are the advantages and disadvantages of direct lending for the consumer? What can banks do to…

A: Direct lending refers to a type of lending that is provided directly by the lender, such as a bank,…

Q: In the case of a bank's accrued interest ?revenues, which occurs first Earning The Interest Revenues…

A: Accrued Interest Revenue implies the interest revenue that has been earned but not yet received. It…

Q: What are the factors that you need to consider in applying for a loan? Why is it important to…

A: When applying for a loan one need to consider several factors at play. Some of them are quantitative…

Q: If a credit is money coming to you, why is it called a credit card when money is removed from your…

A: Under the financial accounting, each account with some balance will either have debit balance or…

Q: nt stud

A: Introduction : In simple words, student loans refers to the amount borrowed by individuals to…

Q: What are a few things to consider before you cosign a loan?

A: Cosigning a loan means that in case the borrower is unable to make the payments due on loan the…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: Discuss the major factors that a lender should take into account when deciding whether to grant a…

A: There are many factors lender should consider while giving term loans.

Q: How long does it take you to eliminate the debt?

A: The debt refers to the financial instruments which are bought by investors, or corporations, or…

Q: what are interest rates? What do they have to do with the amount of credit provided to businesses…

A: The interest rates regulate the flow of money in a country's economy by controlling the total amount…

Q: what are the methods to maximize the use of credit card/s as financial leverage in your business?

A: Financial leverage-It is a method of using borrowed capital as a source to finance the purchase of…

Q: Debt financing requires the entrepreneur to repay the amount borrowed plus interest. True or False

A: Debt financing is a strategy where businesses borrow funds for operational needs. This borrowed sum,…

Q: What happens when a student loans defaults?

A: Student loan is referred to as the type of loan, which is actually designed for helping the student…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.