In General, the Most Important Source of Capital for a New

question 37

Multiple Choice

In general, the most important source of capital for a new entrepreneurial venture is which of the following?

• A) Informal investors
• B) Venture Capital
• C) Banks
• D) Profits from the venture
• E) Incubators

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Definitions:

Transactions

The action of conducting business, trade, or an exchange between two or more parties, often involving financial operations.

Reserve Ratio

The reserve ratio is the fraction of depositors' balances banks must have on hand as cash, a regulatory requirement set by central banks.

National Charters

Official permissions granted by a government allowing the creation or operation of national banks and defining their powers.

Banking

The business conducted or services offered by a bank, such as lending, receiving deposits, and managing financial transactions.