Michigan Residential Builders License Practice Test

Which of the following is a benefit of using a business credit card?

1. No annual fee

2. Monthly statements provided

3. Immediate cash back rewards

4. Lower interest rates

The correct answer is: Monthly statements provided

Using a business credit card often provides the benefit of receiving monthly statements, which can significantly help in managing finances. These statements offer a summarized view of all transactions made during the month, making it easier for business owners to track expenses, monitor cash flow, and generate reports for accounting purposes. This organized billing process can aid in budgeting and financial planning, allowing for better financial decision-making. The clarity and organization that monthly statements bring can enhance the overall financial health and oversight of the business. While some business credit cards may have no annual fees, offer cash back rewards, or present lower interest rates, these features can vary by card and provider. The consistent delivery of monthly statements, however, is a standard feature that is valuable for ongoing financial management across all types of business credit cards.