The Small Business Administration's Microloan Program Awards Loans to Entrepreneurs

question 18

Multiple Choice

The Small Business Administration's microloan program awards loans to entrepreneurs based primarily on their

• A) collateral.
• B) credit history.
• C) previous business success.
• D) integrity and sound business idea.

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Definitions:

Stock Rights

Options granted to existing shareholders to purchase additional shares in the company at a predetermined price, usually within a short period.

Declared Right

A benefit or privilege announced by a company to its shareholders, such as the right to purchase additional shares at a determined price before the public.

General Cash Offer

A public offering of securities to all investors by a company aiming to raise capital, as opposed to a rights offering or private placement.

Securities

Financial instruments that represent ownership positions in corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.