According to the Small Business Administration,the Failure Rate of New

question 58

Multiple Choice

According to the Small Business Administration,the failure rate of new businesses within the first few years is:

• A)less than 25%.
• B)about 70%.
• C)50%.
• D)about 33%.

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Definitions:

Covered Interest Arbitrage

A trading strategy in which an investor uses a forward contract to hedge against exchange rate fluctuations, exploiting the interest rate differentials between two countries.

Uncovered Interest Parity

A financial theory suggesting that expected differences in interest rates between two countries will equal the expected change in exchange rates between their currencies.