One Disadvantage of Having Credit Cards for Personal Use Is

question 62

Multiple Choice

One disadvantage of having credit cards for personal use is that

• A) they offer no protection if they are stolen.
• B) they are less convenient than other forms of credit.
• C) many companies have a policy that prevents employees from having both personal credit cards and credit cards for business use.
• D) they can make it easy to pile up a large amount of debt quickly.

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Definitions:

Monthly Disburses

This refers to the amount of money a company pays out on a monthly basis, covering expenses such as salaries, utilities, and rent.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Daily Interest Rate

The interest rate expressed as a daily percentage, indicating the amount of interest charged or earned each day.

Collection Float

The time delay between when a check is deposited and when the funds become available in the account.