When Using Equity Financing from Family and Friends

question 20

Multiple Choice

When using equity financing from family and friends:

• A)business arrangements should be in good faith.
• B)details such as terms of the investment and rights of the investor need not be in writing.
• C)they can be more patient than other investors in when they expect a return on investment.
• D)since the amount of money is usually small,they do have an ownership position in the venture.

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Definitions:

Latent Learning

Latent learning is the process by which knowledge is acquired without any immediate manifestation of learned behavior or obvious reinforcement.

Cognitive Processes

Mental processes involved in gaining knowledge and understanding, including perception, thinking, memory, judgment, and problem-solving.

Conditioned Reinforcers

Secondary reinforcers that acquire their reinforcing qualities through their association with primary reinforcers.

Fixed-Interval

In operant conditioning, a schedule of reinforcement where rewards are presented at fixed time intervals, as long as the appropriate response is made.