Because of the High Risk and Relatively Small Amount of Cash

question 9

Multiple Choice

Because of the high risk and relatively small amount of cash required to start his business,Graham is turned down by traditional creditors.However,a wealthy individual believing in Graham and the business agrees to finance the start-up.What is this wealthy individual called?

• A) venture capitalist
• B) business angel
• C) private bank
• D) credit specialist

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Definitions:

Storage Cost

Expenses associated with storing goods or inventory, including warehouse rent, utilities, and handling charges.

Ordering Cost

The expenses associated with placing and processing orders for goods or materials, including administrative costs and communications expenses.

Purchase Price

The amount of money paid or agreed to be paid by the buyer to acquire ownership of a product or service.

Service Level

A measure of the quality and effectiveness of a service, often evaluated in terms of customer satisfaction, response time, and the availability of services.