In the Context of Small Businesses, Which of the Following

question 65

Multiple Choice

In the context of small businesses, which of the following is true of debt securities?

• A) Commercial banks prefer to make long-term loans.
• B) Publicly issued debt is commonly used by small firms.
• C) Small companies rely on loans from commercial banks.
• D) Insurance companies prefer to make short-term loans.

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Definitions:

Stimulus Motives

Drives or urges stemming from external sources that motivate behavior to satisfy a need or achieve a goal.

Bored

A state of feeling disinterested, restless, or unengaged due to a lack of stimulation or interest in the current activity or surroundings.

Habituated

The process by which an individual becomes accustomed to a stimulus or environment over time, leading to a decrease in responsiveness.

Yerkes-Dodson Law

A psychological principle that asserts there is an optimal level of arousal for the best performance of a task: too little arousal can lead to underperformance, while too much can lead to mistakes.