The Two Major Advantages of Getting a Loan Versus Investment

question 16

Multiple Choice

The two major advantages of getting a loan versus investment capital are ________.

• A) the money doesn't have to be paid back and lenders typically take an active interest in their borrowers
• B) banks are reliable sources of funding for startups and interest payments are tax deductible
• C) the money doesn't have to be paid back and no ownership in the firm is surrendered
• D) no ownership in the firm is surrendered and interest payments are tax deductible
• E) banks are reliable sources of funding for startups and lenders typically take an active interest in borrowers

Perform operations on algebraic expressions involving exponents and radicals.

Understand the process and significance of check clearing including transit and processing float.

Grasp the factors influencing a firm's level of receivables and the impact of credit policy on these levels.

Recognize the criteria for extending credit to new customers.

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Definitions:

Debt Collector

An individual or agency that specializes in collecting debts owed by individuals or businesses.

Verification

The process of confirming the accuracy, truth, or validity of something.

Fair Credit Reporting Act

A federal law in the United States designed to ensure the accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies.

Credit Checks

The process of evaluating an individual's or company's credit history and current financial status to assess their creditworthiness.