answer choices . In addition to above, investors have other advantages like: Quick understanding of the credit instruments and weigh the ratings with advantages from instruments; quick decision making for investment and also selling or buying securities to take advantages of market conditions; or, perceiving of default risk by the company. When making a purchase with a credit card, it's important to remember a credit card primarily acts as a loan that needs to be paid back. B. 2) From the list below, pick an advantage of using credit to complete a purchase: a) Impulse buying b) Overbuying c) Financial Difficulties d) Instant enjoyment e) Cost of credit Explanation: One of the advantages of using credit is that allows consumers get the item they D) Using them means you will have less spendable money in the future. Which of the following is a disadvantage of using credit? A) Makes it easier to save B) The potential high cost C) The difficulty in paying back loans D) The potential for personal bankruptcy. 2. D) convenience in making day-to-day transactions Disadvantages of factoring are profit reductions, customer dissatisfaction, dependency on customer credit, higher finance charges, customer touch looses, etc. This quiz is incomplete! easy to carry and use. Which one of the following is an advantage of using credit? Use the National Credit Union Administration's research tool to browse credit unions according to your geographical location, employment sector, faith . Disadvantages: Against the above advantages, the following are the main disadvantages of the partnership form of organisation: 1. Credit cards can be used to increase your credit score. lesson seven quiz: credit www.practicalmoneyskills.com credit quiz 7-4 name: date: true-false 1.A disadvantage of using credit is impulse buying. Loan Limits. But, there are a few things you need to decide before you register as a sole proprietor. Categories Questions. This answer has been confirmed as correct and helpful. For small businesses, credit cards provide resources owners need when they don't have the cash. Shopping convenience Capacity to access credit in the future Ease of returning merchandise Slowing of progress toward financial goals The amount of damage you will be required to cover if your car is involved in an accident that is your fault is your: Co-payment Premium Deductible Fair share A company's earnings are $3 per share, it's . Disadvantages You Should Be Aware of With Business Credit Cards. No grace period. D) All of the above. A. Diversifying a lender's credit risk exposure B. Drawbacks of […] New answers. One reason so many people are so strongly anti-credit card is that they've seen how much trouble people can get themselves into by using credit cards irresponsibly.. Credit card haters often point out that most credit card users — 53% of them, according to a 2021 Lending Tree study — carry a balance from month to month, and the average amount of that . As well as considering the pros and cons, you may like to look at the following factors to help decide if a credit card is right for you. Some consumer cards have a standard APR of 29.99%. 129.(p. A line of credit is usually cheaper than using a credit card. Convenience. If any person is spending much time on the Internet . Of the following statements, which is not a disadvantage of using credit? d. Credit cards require a good credit rating and responsible credit . Which Of The Following Is A Disadvantage When A Business Accepts Credit Cards A credit score is a considerable aspect of your financial life. C) It is more difficult to obtain than repay. B) increases the number of checks written. 8. soumen314. A. A)Some customers do not pay, creating an expense. Reducing the need to monitor each individual loan's payment stream C. Transforming illiquid assets into liquid securities D. Serving as a new source of funds for lenders and attractive investments for investors E. All the options are . Usage of credit cards can make you an impulsive shopper as you don't have to worry about cash with you. Reduces Profits. The answer is option B. d. cash advances often come with an . 14) A) Credit card fraud. B. Which of the following is the least appropriate reason for using credit? B) increases the number of checks written. D. ease of returning merchandise E. having a record of all purchases. This answer has been confirmed as correct and helpful. Credit cards: Advantages and Disadvantages Latino Community Credit Union 6 There are a wide variety of credit card products and features. - Which of the following is a disadvantage of credit transaction? 5. It is important to shop around for options before deciding on a credit card. turns accounts receivable into cash quickly O c. highly expensive source of short-term financing O D. eliminates credit and collection departments. can purchase things now and pay for them later. The advantages of a sole proprietorship are simplicity and affordability, particularly when registering with Ownr. Balancing your account may be difficult unless you record every debit card transaction. The APR is determined by many factors, including a person's creditworthiness, payment history . Eighty percent of consumer spending in the U.S. was cashless. 1. c. Interest payments increase cash flow. However, since small-business credit cards have been excluded from protection under the Credit Card Accountability Responsibility and Disclosure Act of . Disadvantages of Credit Cards. Rating. Offer credit to give your customers another payment option. Added 2/1/2020 1:19:21 PM. Each of the following is a disadvantage of using credit cards EXCEPT: A. often involves going into debt B. places a claim on future income C. does not seem like spending real money D. interest free loan if balance is paid off monthly was asked on May 31 Slowing of progress toward financial goals is a disadvantage of using credit. Question 15 2.5 pts Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers? Disadvantages of Debit Cards. Advantages of a sole proprietorship. Which of the following is an advantage of securitizing loans? Which of the following is a disadvantage of using a letter of credit (L/C)? asked Aug 26, 2018 in Business by Konte A) The business bears the responsibility of collecting cash from the customer. Disadvantages of Letter of Credit. 1. Here_To_Help_You. 9 disadvantages of using a credit card. Capital refers to a person's assets. Cons of offering credit. High annual fee - bad credit cards are very high on the risk factors and they are pretty risky investments for card issuers. Categories Questions. Thus, a partnership firm usually enjoys good credit standing. c. Credit cards generally come with interest and other fees that cash does not. Although PIN and chip technologies help to protect your identity somewhat with a debit card, this technology is not perfect. 30 seconds. Boosting your credit can give you better access to student loan refinancing, which could help you save money on your student loans and pay them off faster after you graduate. A Trade Credit Insurance Policy: Covers risk by paying claims against companies that cannot pay you. Which of the following is not a disadvantage of using credit? Answers: 2 on a question: Which of the following is not a disadvantage to cash advances on a credit card? Bad credit and good credit card offers do not go hand-in-hand. A. Of the following statements, which is not a disadvantage of using credit? D)Profits are increased by making sales to a wider range of customers. For an importer, which of the following is a disadvantage of using a letter of credit for international transactions? Disadvantage of debit cards for students. Affordable and simple. Which of the following is a disadvantage of using credit? In fact, many of the advantages credit cards provide can save you money in the long run. Which of the following is a DISADVANTAGE of using CREDIT CARD? Disadvantages of a Debit Card. 0 The business pays a processing fee. E) All of the above are cons. Q. The limit is unique for each region. Credit . D) It may tempt you to make impulse purchases. A letter of credit adds to the cost of doing business. C) the ability to buy large items earlier. One reason so many people are so strongly anti-credit card is that they've seen how much trouble people can get themselves into by using credit cards irresponsibly.. Credit card haters often point out that most credit card users — 53% of them, according to a 2021 Lending Tree study — carry a balance from month to month, and the average amount of that . Check book balancing. 174) Which one of the following is a disadvantage of using credit? Which of the following is a disadvantage of using credit? There are at least three major drawbacks or disadvantages of having bad credit. Answers: 1 on a question: Each of the following is a disadvantage of using credit cards except a. often involves going into debt b. places a claim on future income c. does not seem like spending real money d. interest free loan if balance is paid off monthly Which of the following is a disadvantage of factoring? Log in for more information. It can enable you to make convenient purchases. Leave a Reply Cancel reply. Question 14 of 20 Which of the following is not a disadvantage of using credit A from BUSINESS C07 at Ashworth College However, there is a way to combat the disadvantages of offering trade credit and that is trade credit insurance. Just like any decision you make for your business, there will be pros and cons. Read these few points carefully to know about the disadvantages of credit cards and how to use them effectively. Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers? Which of the following is a disadvantage of using. Advantages & Disadvantages of Consumer Credit. A. turns accounts receivable into cash quickly B. ensures an uneven pattern of cash flows C. highly expensive source of short-term financing D. eliminates credit and collection departments ; Question: Which of the following is a disadvantage of factoring? Using credit will harm your credit score. One disadvantage to debt factoring is that it reduces overall profit for businesses. credit debts if income is unavailable. The investor community, in general, also benefits from the other services offered by credit rating agencies, namely, research in the form of industry reports, corporate reports, seminars, and open assess to the analysis of the agencies. Which of the following is not a disadvantage of credit cards? This preview shows page 3 - 6 out of 13 pages. Which of the following is not a disadvantage of using credit? D) convenience in making day-to-day transactions. A disadvantage of using credit is that: The use of credit can lead to overspending. Which of the following is not a disadvantage of using credit instead of cash? D. In this guide we'll lay out some of the advantages and disadvantages of getting a credit card. B. Debit card payments don't help you build credit. Your email address will not be published. It is easier to steal your money if you lose a debit card. A. turns accounts receivable into . Today, credit card processing is a competitive industry because customers use it as their preferred payment method. The two most commonly used types of credit are which of the following? 14) Which of the following is a disadvantage of using credit cards? 1. Which of the following is a disadvantage of credit transaction? Each of the following is a disadvantage of using credit cards except: a. often involves going into debt b. places a claim on future income c. does not seem like spending real money d. interest free loan if balance is paid off monthly Advantages include being able to purchase something you otherwise might not be able to.Using credit means you can have what you want right away, rather than waiting for later.Credit is a convenience. Below is given a list of the complete disadvantages of the Internet. A credit card may suit you if you. C)Prices must be reduced when selling on credit. Advantages of Using Debit Cards. The use of credit can lead to overspending. With debit cards, the money comes directly from your bank account, so you avoid spending more money than you have. b. cash advances require a lot of paperwork and are generally difficult to get. Debit cards also offer little fraud protection. Question 1. As with any financial instrument, even letter of credit has disadvantages as listed below: Additional Cost - Bank Fee. Lack of Harmony: It is generally observed that there is friction and lack of harmony among the partners after the firm has worked for some time. B) Risk of overspending. What is a disadvantage of using multilayer switches for inter-vlan routing? A. increases turnover B. facilitates the sale of durable goods C. encourages the habit of - Past Question and answers for schoolworks. Advantages of using credit are all of the following except A) the ability to cover cash flow shortages. However, if you are in an area that has expensive real estate and the limit is low, you may not be able to get the money that you need. It plays a crucial role in a loan provider's choice to state "yes" or "no" to your loan or charge card application. No Debt - With a credit card it's easy to purchase anything you want, even if you don't have the funds. Which of the following is a disadvantage for the fast-food franchisee? Tax deductions are possible with debt financing. Addiction, time-waster, and causes distractions. However, consumer credit can also tempt some to spend beyond their means. Consider these downsides to extending credit to customers. Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers? 45 Questions Show answers. Which of the following is not a disadvantage of using credit instead of cash? One of the biggest drawbacks with FHA loans is the loan amount limitations. Credit cards can be used to increase your credit score. However, this is far from the truth. They are listed below: 1. Log in for more information. However there are some disadvantages of credit cards. Finance. The factor always charges a percentage of the overall invoice value (usually between 1-3%), and on bigger contracts this can turn out to be quite a hefty sum. Plus, you don't have to remember to pay the credit card bill once a month. What are the disadvantages of the Internet? SURVEY. Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers? 0 The business bears the responsibility of collecting cash from the customer. - Which of the following is a disadvantage of credit transaction? Disadvantages of Credit Cards. c. cash advances are often the last thing to be paid when paying off your credit card. Business credit cards, accounts receivable financing, invoice factoring, and corporate bonds are also possibilities. asked Sep 23, 2015 in Business by Kayla A) The business bears the responsibility of collecting cash from the customer. Option A, C and D are disadvantages of using credit cards. D. The use of credit can allow for the easier return of merchandise. Are a US citizen, permanent resident or hold an eligible temporary visa. Which of these people is likely to run into problems when using a credit card? a. Finance questions and answers. C) Fees and charges may not be what you initially anticipated. Some common advantages of having a credit card include: Paying for purchases over time. It offers consumers flexibility in spending and, in some cases, perks and rewards. Shopping convenience Capacity to access credit in the future Ease of returning merchandise Slowing of progress toward financial goals The amount of damage you will be required to cover if your car is involved in an accident that is your fault is your: Co-payment Premium Deductible Fair share A company's earnings are $3 per share, it's . Which of the following is a valid reason for using credit? The business checks customers' credit ratings. 1. Unlike a credit card, a debit card uses funds directly from your checking account. a. cash advances are similar to loans in that they need to be paid back with interest. c. There are no disadvantages to minimum wage laws, negative income taxes, or the Earned Income Tax Credit (EITC). . Question: Of the following statements, which is a disadvantage of using credit? C) the ability to buy large items earlier. When comparing the advantages and disadvantages of accepting credit cards, many businesses assume that setbacks outweigh the benefits. Here are a few common disadvantages of FHA loans. C) In general they are an expensive way to borrow money. Credit cards can be an excellent budgeting tool, but as with many financial products there are pros and cons. To play this quiz, please finish editing it. Advantages of using credit are all of the following except A) the ability to cover cash flow shortages. While most students have a general idea about the advantages and disadvantages of credit, this lesson provides an opportunity to discuss these issues in more detail. Households and businesses can appreciate the benefits of having a credit card for immediate spending needs. A. D. The importer must pay a bank fee for the letter of credit. A) They allow the consumer the ability to rent cars and make online reservations. C. The exporter cannot avail pre-export financing when using a L/C. A credit card allows you to borrow funds on credit, leaving disposable cash in your account. A. increases turnover B. facilitates the sale of durable goods C. encourages the habit of - Past Question and answers for schoolworks. A disadvantage of a negative income tax program is that a poor person who chooses not to work many hours would not receive a cash benefit. B)Sales can be made to a more diverse group of customers. Credit cards increase the likelihood of impulse buying. It results in the importer losing control over the process of trading. Missing payments can damage your credit score. 0 The business bears the risk of nonpayment by the customer. Banks charge a fee for providing this service, and it can increase steeply if the parties want to put some additional features. Although the Internet has various benefits and is one of the most powerful creations, it also contains many disadvantages. B) They make it easy to lose control of spending. Are at least 18 years of age. Added 10/24/2020 9:23:50 PM. Consumer credit allows people to purchase goods and services immediately and repay the costs over time. Disadvantages of Credit Rating. Question 19 of 20 50 50 Points Which of the following is not a disadvantage of from BUSINESS C07 at Ashworth College Many people use credit cards for making purchase. A letter of credit does not give protection to the exporter. Fees and interest may be charged for the use of credit cards. It reduces the exporter's level of trust in the importer. A. receiving advance notice of sales C. avoiding the necessity of carrying cash. answer choices. If you should lose your debit card, someone could still run it as a credit card instead. The business bears the responsibility of collecting cash from the. The business bears the risk of nonpayment by the customer. Guidance, not Recommendation Credit Cards are available under various terms and conditions and can be beneficial when cash is not available. The business pays a processing fee. List of the Advantages of a Line of Credit 1. Which of the following is a disadvantage of selling on credit? Taxes are a crucial consideration to consider when looking at the advantages and disadvantages of debt financing. Which of the following is a disadvantage when a business accepts credit cards or debit cards from customers? A) Ease of returning merchandise B) Shopping convenience C) Slowing of progress toward financial goals D) Capacity to access credit in the future. There are also many disadvantages of utilizing credit along with their advantages: Set up credit-value required before getting a credit Empowering impulsive and unnecessary "needed" buys High-loan costs if not entirely paid by the due date Yearly charges for some credit - can get costly throughout the long term Bad credit attracts higher rates. B) It can be difficult to repay if overused. b. The only problem with a credit card is that it will usually carry a high APR. 2. Advantages of factoring are immediate cash inflow, better focus on business operations, evasion bad debt, the speed of acquisition, and no collateral required. A letter of credit does not give protection to the importer. In today's world, credit is integrated into everyday life. b. This loan has an annual percentage rate (APR) which is the rate you'll pay if interest charges accrue, according to the terms of your credit card agreement. A)on-going management training programs B)a peer group for support C)royalty fees D)short-term credit for buying supplies E)recognized name and product A) It can be costly to use. Offering credit to customers is a necessary evil to remain competitive in the marketplace. Select one: a. However, using credit wisely is critical to building a solid credit history and maintaining fiscal fitness. The use of credit can allow you receive advance notice of sales. After considering the advantages and disadvantages of credit unions, all that's left is to explore the credit options available to you and start comparing interest rates and member reviews. asked Aug 26, 2018 in Business by Konte A) The business bears the responsibility of collecting cash from the customer. Which of the following is a disadvantage of factoring? Following are cons of the credit rating: 1. When choosing a credit card, look carefully at the following: ANNUAL Which of the following is a disadvantage of using credit? d. Using credit will harm your credit score. C. The use of credit allows for the purchase of goods even when funds are low. Which of the following is a disadvantage of credit transaction? O A. ensures an uneven pattern of cash flows O B . 0 The business checks customers' credit ratings. C. It reduces the importer's ability to borrow funds for other purposes. 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