Borrowing from Family and Friends Is a Common Source of Debt

question 28

True/False

Borrowing from family and friends is a common source of debt financing for a start-up business.

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Definitions:

Word-of-mouth

A form of marketing where consumers share information and opinions about products or services with others, significantly influencing buying behavior.

Mavens

Individuals recognized as knowledgeable experts, often influencing others through their opinions and recommendations.

Connectors

Individuals who play a critical role in communities by linking numerous people across various social or professional groups, enabling the spread of information or trends.

Core Ties

The strong, significant relationships in an individual's social network that offer support, trust, and the exchange of information.