What Is the Advantage to a Small Business When Planning

question 95

Multiple Choice

What is the advantage to a small business when planning for shortfalls in cash flow?

• A) Financial resources can be saved in a savings account until needed.
• B) Banks are more likely to offer loans if they know when the money will be needed.
• C) Loans can be obtained in advanced and put in interest earning investments.
• D) Lower interest loans can be sought for the needed time frame.
• E) Small businesses will appear more professional, resulting in favorable banking relationships.

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Definitions:

Clay Tablets

Ancient writing materials made from clay, used primarily in Mesopotamia, for recording texts, transactions, or events.

Mesopotamia

An ancient region located in the eastern Mediterranean, broadly corresponding to present-day Iraq, northeastern Syria, southeastern Turkey, and parts of western Iran, known as the cradle of civilization.

Recordkeeping

The practice of maintaining and preserving records or documents detailing an organization's or individual's activities and transactions.

Bronze Metallurgy

The practice and knowledge involved in producing bronze, an alloy of copper and tin, used in tools, weapons, and sculptures in ancient times.