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:

Humanistic Psychologists

Psychologists who focus on individual potential and stress the importance of growth and self-actualization.

Healthy Growth

The process of developing physically, emotionally, mentally, and socially in ways that are considered beneficial and constructive.

Potential

The inherent ability or capacity for growth, development, or coming into being.

Behaviorism

The view that psychology should be an objective science that studies behavior without reference to mental processes. Most research psychologists today agree with the first part but not with the second part.