Which of the Following Is True About Banking Finance

question 3

Multiple Choice

Which of the following is true about banking finance?

• A) Like angel investors and venture capitalists, banks invest in a business.
• B) Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment.
• C) Banks typically focus on investing in a small number of industries.
• D) Banks are concerned with the long-term potential for returns.
• E) Banks typically provide more capital as the new venture becomes more established.

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Definitions:

Prequalification Offer

An initial offer made based on a preliminary assessment of the recipient's qualifications, often used in loan or credit applications.

Consent Order

A consent order is a legal agreement approved by a judge or regulatory authority, where parties agree to specific terms without admitting guilt or liability.

Illegal Behavior

Actions that violate laws and regulations, subjecting the perpetrator to legal penalties.

Federal Trade Commission

A government agency of the United States tasked with protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.