Many Small Rural Operations Cannot Obtain Financing Within Their Own

question 24

Multiple Choice

Many small rural operations cannot obtain financing within their own communities because:

• A)small rural banks believe that small businesses lack the flexibility to adapt to changing market demands.
• B)small businesses require a huge sum of money as they often compete in the mass market.
• C)government regulations do not permit financing small rural businesses.
• D)small rural banks lack the necessary financial expertise to counter the risks involved with small-business loans.
• E)rural communities have various business guidelines that prohibit rural banks from financing small businesses.

Analyze the effects of favorable and unfavorable variances on income.

Describe the steps involved in the effective management of variance analysis.

Explain how flexible budgets are used in performance evaluation.

Learn the reasons behind different variances and their impact on a company’s financial performance.

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Definitions:

Business Creditors

Entities or individuals to whom a business owes money or other financial obligations.

Personal Assets

Items of value owned by an individual, including tangible property like real estate and cars, as well as intangible assets such as investments.

Unlimited Liability

The legal responsibility of business owners to bear the full extent of their company's debts or obligations, potentially requiring them to sell personal assets to cover business debts.

General Partners

Individuals who jointly own and manage a partnership, assuming full liability for the partnership's debts and obligations.