Your Friend, Shonta, Started a Graphic Design Firm About a Year

question 26

Multiple Choice

Your friend, Shonta, started a graphic design firm about a year ago. The business has done well, but it needs a lot more equipment, computers, and employees to continue expanding. Shonta does not see any problem because she thinks she can easily get all the money she will need from her local bank. What advice might you give her?

• A) She is right―the bank is likely to lend her as much as she needs because banks primarily focus on supporting small businesses.
• B) She is crazy―banks do not lend money to small businesses but only to well- known, well-established organizations.
• C) She should sell her business immediately before it fails because most small businesses fail during the first five years.
• D) She should not accept any new clients so that she can end the need to add additional equipment and employees.
• E) She should consider alternative sources of financing because banks provide only about one-fourth of the total capital to small businesses.

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Definitions:

Recessive Genes

Genes that are not expressed as traits unless paired with an identical gene; often overshadowed by dominant genes when different alleles are present.

Dominant Genes

Genes that express their trait even if only one copy is present in the genotype.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and promoting 'rest and digest' bodily functions.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity, often referred to as the fight or flight response.