The two major advantages of getting a loan versus investment capital are ________.
A) the money doesn't have to be paid back and lenders typically take an active interest in their borrowers
B) banks are reliable sources of funding for startups and interest payments are tax deductible
C) the money doesn't have to be paid back and no ownership in the firm is surrendered
D) no ownership in the firm is surrendered and interest payments are tax deductible
E) banks are reliable sources of funding for startups and lenders typically take an active interest in borrowers
Question 2
Historically, commercial banks ________.
A) have been a good source of funds for startup firms
B) have not funded startup firms at all
C) have been a good source of funds for manufacturing firm startups but not for service firm startups
D) have been a good source of funds for service firm startups but not for manufacturing firm startups
E) have not been a good source of funds for startup firms
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When operating your own business, it is wise to know your cost of capital and that of the ...
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