A Mother in a Developing Country Wants to Borrow the Equivalent

question 64

Multiple Choice

A mother in a developing country wants to borrow the equivalent of $20 to enable her to start a small restaurant run by her family.Which type of financing is she looking to obtain?

• A) Public bond issue
• B) IPO
• C) Micro loan
• D) Futures contract on a commodity

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Definitions:

Performance Pay

A compensation system where employees are rewarded based on their job performance, often including bonuses or other financial incentives.

Overestimate

To assess something at a higher value or quantity than it actually possesses.

Underestimate

The act of judging something to be less in quantity or importance than it actually is.

Open Book Policy

A business practice where a company shares detailed financial and operational information openly with its employees to foster transparency and inclusivity.