Which of the Following Is True About Bank Financing

question 86

Multiple Choice

Which of the following is true about bank financing?

• A)Like angel investors and venture capitalists,banks invest in a business.
• B)Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment.
• C)Banks typically focus on investing in a small number of industries.
• D)Banks are concerned with the long-term potential for returns.
• E)Banks typically provide more capital as the new venture becomes more established.

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Definitions:

Specialty Key Chains

Products designed and manufactured with unique features or for specific niche markets, often used for personalization or as collectibles.

Obligation

A duty or commitment to fulfill an agreement, such as repaying a loan or delivering goods or services as contracted.

Liability

A financial obligation or debt that a company or individual owes to another entity.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from net sales, representing the profit made before deducting operating expenses.