Although Not the Primary Source of Financing for Most Small

question 108

Multiple Choice

Although not the primary source of financing for most small business start-ups, another source of early financing is:

• A)family members.
• B)commercial banks.
• C)business suppliers.
• D)asset-based lenders.

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Definitions:

Increasing Opportunity Costs

The principle that the cost of forgoing the next best alternative increases as one allocates more resources to a certain activity.

Value Losses

Decreases in the worth or market value of an asset over time.

Cash Gift-Giving

The practice of giving money as a present to friends or family members on special occasions or celebrations.

Noncash Gift-Giving

The act of giving gifts that do not involve direct monetary exchange, such as time or goods.