Author Question: Small business start-ups are likely to find that getting commercial loans is: A) difficult because ... (Read 22 times)

NguyenJ · **on:** Jul 14, 2018

Small business start-ups are likely to find that getting commercial loans is:
A) difficult because commercial lenders are reluctant to give loans to firms that do not have an established record of successful performance.
B) one of the easiest and most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies.
C) relatively difficult because start-ups require much higher financing costs than other sources.
D) the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies.

Question 2

Daniel, Thomas, and Lucas are partners in a law firm under a typical partnership agreement in which each owns an equal share of the business. Thomas dies suddenly of a heart attack. What will most likely become of the partnership?
A) It will immediately cease to exist and Daniel and Lucas will have to find new jobs.
B) Thomas's share of the business will automatically be split between Daniel and Lucas.
C) Daniel and Lucas will be able to purchase Thomas's interest from his estate.
D) Daniel and Lucas will have to quickly find a new partner to take Thomas's place.
E) It will dissolve, and Daniel and Lucas will lose personal property to pay business debts.