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GCSE Business 2020-2022 OCR

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Question:

What is a Bank Overdraft and give Advantages and Disadvantages for it

Author: eric_galvao



Answer:

-Short Term Finance Source that has the Business Permission to Withdraw Funds that aren't even There, and is only used to get Temporary Amounts of Money A: If a Business is Suffering Short Term Shortage of Cash then its a Perfect Solution A: Interest is only Paid on the Amount Used A: Flexibility is Given Out D: The Bank can ask for it Back whenever it Feels Like D: Bank may Lower, or Withdraw from the Overdraft D: High Levels of Interest is Attached to this


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