What Source of Funding Do the Majority of New Small

question 117

Multiple Choice

What source of funding do the majority of new small business owners rely heavily on to finance their start-ups?

• A) loans from commercial banks
• B) investments by venture capital firms
• C) personal sources, including family, friends, and credit cards
• D) money from angel investors

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Definitions:

Fees Earned

Income generated from the provision of services rather than the sale of goods, often recorded as revenue on the income statement.

Accounts Receivable

Funds that clients or customers have yet to pay to a company for products or services already provided.

Accounts Payable

Obligations a company has to pay back to lenders for products and services bought on credit.

Salary Expense

The total amount paid to employees for services rendered during a specific period before any deductions are made.