ORGANIZING A BUSINESS

THE BUSINESS PLAN

BUYING A BUSINESS – Assignment 1

1. Research two or three banks prime and base rates.

2. While you are at each bank, fine out the interest rate that they would charge for a student loan, and whether there is a banking service package available.

3. Obtain a credit card application form. What kinds of questions does it ask?

4. If you were to apply for a car loan, what different terms are available? Research a few financial institutions to compare terms.

CONT’D BUYING A BUSINESS

5. Does our financial institution require a minimum down payment for a car loan before it will consider your application?

6. Find out what your financial institution has set as the maximum acceptable TDS and GDS.

7. Visit two trust companies or banks, and fina out the following about the credit cards they offer:

a) annual feeb) interest rate charged on outstanding balancec) computing frequency of the interestd) grace period

CONT’D BUYING A BUSINESS

8. Call or visit car dealerships and find out what types of leasing programs they offer. Then call or visit two banks and trust companies and find out the cost of borrowing for one car you have selected.

9. Compare the monthly caring cost of a car loan between a bank that offers you credit for the residual value and one that does not. Be sure you use the same price for the care and the same term.

10. Obtain an application form for a line of credit, and note the questions asked. Compare these questions with those on the application form for a credit card.