I think it would be economic system so a.
D is the answer I believe
Money orders & pre-paid cards are the payment types that require you to pay upfront.
These types of payment method require that you pay upfront and get a check which is available in banks, retails stores etc.
A paper document used to make payment, similar to check is known as Money order. It is only issued when after buyer pay cash or other forms of guaranteed fund because they are prepaid.
The people that often used money orders do not have standard checking account, money orders is acceptable and can be converted to cash.
This method of payment is acceptable and is mostly used for paying debts, and it can be purchased from financial institution for a small fee. Some of the places where money orders are sold include post offices, grocery stores, and gas stations. This makes it easy for anyone to purchase.
Pre-paid cards are often called everyday cards. It is plastics and an alternative to carrying money around. When you purchase prepaid, you load it with money and top it up when balance goes down. They are not like credit card where you run debts on. It is also ideal for those who have no bank account because this type of payment method is not linked to a bank account.
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KEYWORDS:
- money orders
- pay upfront
- pre-paid cards
<span>Bankruptcy
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Bankruptcy is likely the most extreme danger of excessive business debt. In a sole proprietorship, your business finances are not separate from your individual finances, meaning you could face personal bankruptcy. For other common business set-ups, if you cannot meet the repayment requirements of your lenders, they may eventually force you into bankruptcy. This typically means the end of your business, or at least the end of your ownership. Your business assets may be seized to allow creditors to recover some of their money.
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Limited Flexibility
</span>High debt leverage is less severe than bankruptcy but often a signal of impending doom. This means you have too much debt and your debt ratios show difficulty keeping up with your short-term and long-term debt obligations. This makes you susceptible to late fees, default and eventually bankruptcy. It also makes your business unattractive to prospective lenders or creditors. This gives you limited flexibility to find new financing or to buy new equipment or supplies on credit. New investors may also have concerns about your high debt.
<span>Poor Profits
</span><span>Even if your business stays afloat, too much debt leverage makes profitability difficult to achieve. Your business has fixed monthly expenses for building costs and labor. You also have variable costs of production or operations and sales. When you add high monthly principal and interest payments, bringing in enough revenue to make substantial profits becomes unlikely. Plus, if you cannot pay down debt quickly, you carry it longer and pay more in interest over time. Without profit or funding sources, you also cannot expand or grow your business.</span>
