Bank Debt Is Not a Realistic Source of Financing for Startups

question 67

Multiple Choice

Bank debt is not a realistic source of financing for startups due to all of the following reasons except :

• A)payables either do not yet exist or the startup's history is inadequate
• B)a large portion of the assets are intangible and provide no collateral
• C)the startup's dependence on a small number of irreplaceable people is not a good match to demand deposits or other bank liabilities
• D)the startup's receivables collection track record is incomplete

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Definitions:

Sense of Self

The awareness or perception one has of oneself as a distinct individual, including one's traits, beliefs, and experienced identity.

Narcissism

A personality trait characterized by an excessive preoccupation with oneself and a lack of empathy for others.

Conditioning

Conditioning is a learning process in which an individual's behavior becomes modified through the association of a stimulus with a specific response, typically categorized into classical and operant conditioning.

Spotlight Effect

The spotlight effect is the psychological tendency to overestimate the extent to which our actions and appearance are noticed by others.