Bank Debt Is Not a Realistic Source of Financing for Start-Ups

question 22

Multiple Choice

Bank debt is not a realistic source of financing for start-ups due to all of the following reasons except?

• A) a large portion of the assets are intangible and provide no collateral
• B) payables either don't yet exist or its history is inadequate
• C) the start-up's dependence on a small number of irreplaceable people is not a good match to demand deposits or other bank liabilities
• D) receivables collection track record is incomplete
• E) in the event of a default, it is now plausible for the bank to install a management team to help right the operations

---

Definitions:

Genetic Traits

Characteristics or features that are inherited from parents to offspring through genes, influencing physical and sometimes behavioral attributes.

Consumer Behaviourists

Specialists who study the buying habits and patterns of consumers to understand decision-making processes and influences on purchasing.

Overlooked Generation

A demographic cohort that receives less attention compared to other generations in marketing or social analysis.

Generation X

The demographic cohort following the baby boomers, typically defined as individuals born between the mid-1960s and early 1980s.