Which of the Following Is NOT an Advantage of a Finance

question 25

Multiple Choice

Which of the following is NOT an advantage of a finance company over a commercial bank in providing services to small business customers?

• A)Finance companies are less willing to accept risky customers than are banks.
• B)Finance companies are not subject to regulations that restrict the type of products and services they can offer.
• C)Finance companies often have substantial industry and product expertise.
• D)Finance companies generally have lower overhead than banks.
• E)Finance companies do not accept deposits and therefore are not subject to bank-type regulatory restrictions.

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Definitions:

Playa

A flat-bottomed desert basin that temporarily becomes a shallow lake after rainfall.

Alluvial Fan

A conical-shaped deposit of sediment, typically found at the base of mountain ranges, created as flowing water loses energy and drops its load of solids.

Desert Wash

Dry streambeds in desert environments that temporarily fill with water during rainstorms.

Playa

A flat-bottomed desert basin that temporarily becomes a lake after heavy rain but reverts to a dry lakebed as the water evaporates.