There Are Two Major Advantages of Getting a Loan Vs

question 8

Multiple Choice

There are two major advantages of getting a loan vs. investment capital:

• A) the money doesn't have to paid back and lenders typically take an active interest in their borrowers
• B) banks are reliable sources of funding for startups and interest payments are tax deductible
• C) the money doesn't have to paid back and no ownership in the firm is surrendered
• D) no ownership in the firm is surrendered and interest payments are tax deductible
• E) banks are reliable sources of funding for startups and lenders typically take an active interest in borrowers

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Definitions:

Human Capital

The economic value of the abilities, skills, and training of an individual or workforce.

Better Educated

Having a higher level of education or more extensive knowledge.

Better Product

A product that offers higher quality, more features, or superior performance compared to its competitors in the market.

Labor-Saving Appliances

Devices designed to reduce the amount of manual labor needed to perform household tasks, increasing efficiency and saving time.