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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