Disadvantages of overdraft finance, Finance Basics

Assignment Help:

Disadvantages of Overdraft Finance

A. It is expensive as the interest rates of overdrafts are much higher than bank rates.

B. The employ of this finance is an indication of poor financial management principle.

C. It may be misused via management because it does not carry pre-conditions

D. To be short-term financial managements, it can be recalled at short notice leaving the company in financial crisis.

 


Related Discussions:- Disadvantages of overdraft finance

Return on the annuity, An insurance company offers you and end of year annu...

An insurance company offers you and end of year annuity of $48,000 per year for the next 20 years. They claim your return on the annuity is 9%. What is the most you would be willin

Working Capital, AsStudents will analyze and synthesize the financial repor...

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio

PERDIEM CLAIM, how to make a perdiem claim format to maintain the records o...

how to make a perdiem claim format to maintain the records of staff

Similarities between equity finance and preference, Similarities between Eq...

Similarities between Equity Finance and Preference Similarities among Equity Finance and Preference are as follows: a) Both may be permanent whether preference share capita

Calculate the ex-right stock price, DIY Inc. plans to raise $200,000 with a...

DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding.  a. If DIY sets the subscription price to be $80

Finance Instrumant and Market , What factors would affect company consider ...

What factors would affect company consider in choosing option for capital-raising

Explain the method of offer of sale, Explain the method of Offer of Sale ...

Explain the method of Offer of Sale Method of offer of sale consists in outright sale of securities through intermediary of issue houses or share brokers. In other words, sh

Find the new cost of equity , Y ou are interested in the value of Joes Shoe...

Y ou are interested in the value of Joes Shoe Corporation and its cost of capital. Suppose you believe that the assumptions of Miller-Modigliani's Proposition 1 (without taxes) are

State the classification of new issue market, State the Classification of N...

State the Classification of New Issue Market New market can be categorized as: (i) A market where firms go to the public for the first time through initial public offerin

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd