If Mary Chooses to Buy a Raffle Ticket That Has

question 37

Multiple Choice

If Mary chooses to buy a raffle ticket that has a 5% chance of winning over one that has a 95% chance of losing, she is:

• A) exaggerating the improbable.
• B) exhibiting hindsight bias.
• C) avoiding loss.
• D) exhibiting confirmation bias.

Know the criteria and considerations lenders and investors use when evaluating a small business for financing.

Recognize the concepts of initial public offerings (IPOs) and private placement in business financing.

Understand the advantages and disadvantages of using personal capital and resources in business financing.

Learn about the potential impact of management capabilities and business success on securing financing.