Which of the Following Is NOT an Advantage of a Finance

question 39

Multiple Choice

Which of the following is NOT an advantage of a finance company over a bank in providing services to small business customers?

• A)Finance companies are less willing to accept risky customers than are banks.
• B)Finance companies are not subject to regulations that restrict the type of products and services they can offer.
• C)Finance companies often have substantial industry and product expertise.
• D)Finance companies generally have lower overhead than banks.
• E)Finance companies do not accept deposits and therefore are not subject to bank- type regulatory restrictions.

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Definitions:

Founding

The act of establishing something, such as a city, organization, or institution, marking its origin.

Tenochtitlán

The capital of the Aztec empire, founded in 1325, which was located on an island in Lake Texcoco where modern-day Mexico City stands.

Khipu

Andean record-keeping device consisting of numerous knotted strings hanging from a main cord; the strings signified, by position and color, numbers and categories of things.

Accounting Records

Documentation kept by businesses and organizations to track their financial transactions, assets, and liabilities for the purpose of financial management and reporting.