Small Business Start-Ups Are Likely to Find That Getting Commercial

question 141

Multiple Choice

Small business start-ups are likely to find that getting commercial loans are:

• A) difficult because lenders are reluctant to give loans to firms that do not have a track record.
• B) one of the most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies.
• C) the most difficult because start-ups require higher financing than what banks can offer.
• D) the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies.

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Definitions:

Price Level

A general measure of the cost of goods and services within an economy or specific market at a given time.

Real GDP

The total value of all goods and services produced within a country in a year, adjusted for inflation, reflecting the real purchasing power.

Aggregate Demand

The cumulative requests for goods and services in an economy, aimed at a fixed price level within a set timeline.

Long-Run Effect

The impact of economic policies or events that become apparent and have a sustained influence over an extended period.