Unformatted text preview: 7) What is outstanding balance or overdraft? Difference between revenue and expenditure 8) How do you minimize the amount of overdraft and therefore the interest payments? Owner gets financing from bank and gives a loan to the contractor / Owner pays mobilization charge for contractor. 9) What is prime rate? Interest charged to preferred customer 10) How does the contractor know how much credit is available? By doing overdraft calculation...
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- Spring '09