Peppy Has Inquired About the Possibility of Obtaining a Microloan

question 23

Multiple Choice

Peppy has inquired about the possibility of obtaining a microloan from the SB A.This type of loan is awarded primarily on the basis of the:

• A)borrower's integrity and the soundness of the business ideA
• B)amount of collateral the borrower can pledge.
• C)borrower's credit history and record of previous business success.
• D)age of the borrower,since only senior citizens qualify.

---

Definitions:

Fiduciary Agreement

A legal or ethical relationship of trust between two or more parties, typically where one party agrees to act in the best interests of another.

Option Agreement

A contract granting a party the right, but not the obligation, to buy or sell an asset at a determined price within a specific time frame.

Consent Restraint Provision

A clause in a contract that limits a party's actions based upon agreed terms, which is enforceable only if all parties consent to it.

Statutory Solutions

Statutory solutions involve solving legal, social, or economic issues through the enactment of laws or statutes by a governmental body.