Which of the Following Statements Regarding the Small Business Administration

question 5

Multiple Choice

Which of the following statements regarding the Small Business Administration (SBA) is not true?

• A) SBA loans require at least 15% owner's equity.
• B) The SBA Microloan Program provides up to $75,000 in long-term loans to small businesses.
• C) SBA Microloans have repayment terms of up to 10 years.
• D) All of the above

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Definitions:

Marginal Cost

The increase in cost resulting from the production of an extra unit of a product or service.

Markup

The difference between the cost of a product or service and its selling price, expressed as a percentage of the cost.

Marginal Cost

The additional total expense incurred from producing one more unit of a product or service.

Free Entry

A market condition where firms can freely enter or exit the industry without facing significant barriers to entry.