The SBA Only Aids ________ When Their Applications Would Not

question 116

Multiple Choice

The SBA only aids ________ when their applications would not be approved through normal processes.

• A)banks
• B)the FRS
• C)creditors
• D)small business owners

---

Definitions:

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Economy Strong

A state wherein an economy is experiencing robust growth, low unemployment, and increasing levels of consumer spending and business investment.

Operating Leverage

Operating leverage describes the degree to which a company can increase its profits by increasing sales, reflecting the proportion of fixed costs to variable costs.

Sales Decrease

A reduction in the volume or value of sales within a company during a specific period compared to a previous period.