Which of the Following Statements Is True About Sources of Financing

question 111

Multiple Choice

Which of the following statements is true about sources of financing for entrepreneurs?

• A) Banks and government loans provide much larger portions of start-up funds than the personal resources of owners.
• B) Lending institutions such as banks are more likely to help finance the purchase of an existing business than a new business.
• C) Getting money from banks and government loans is an easy task for business owners.
• D) Business owners have to spend very little time in business plans and other documents while borrowing money from banks.
• E) Government loans have flexible eligibility guidelines to encourage entrepreneurship among the general public.

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Definitions:

Credibility

The quality of being trusted and believed in or the ability to inspire confidence.

Position

The role, status, or job title an individual holds within an organizational structure, defining their responsibilities and authority level.

Authority

The right or power to give orders, make decisions, and enforce obedience.

Sincerity

The quality of being genuine, honest, and free from pretense or deceit in one's actions or expressions.