Starting a Business with ________ Is by Far the Most

question 54

Multiple Choice

Starting a business with ________ is by far the most common start-up financing.

• A)bonds and equity
• B)personal and family funds
• C)bank loans
• D)venture capital

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make payments.

Creditor

An individual or organization to whom money is owed by a debtor.

Co-Sign

To sign a legal document alongside another person, often agreeing to take responsibility if the primary signer fails to meet the terms.

Credit Application

A form or request submitted by an individual or business seeking to obtain credit from a lending institution.