Personal Credit Cards Have Proven to Be a Source of Financing

question 18

Multiple Choice

Personal credit cards have proven to be a source of financing for start-up firms for all of the following reasons except?

• A) credit card debt is not based on the firm's ability to repay, but rather the individual card holder's ability to repay
• B) teaser rates afford initial low cost borrowing
• C) balance transfer at below-prime rates
• D) credit card debt can create problems if the firm doesn't generate cash flows to cover credit card payments once low introductory rates expire

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Definitions:

Lesbian Mothers

Female same-sex partners who are raising children together, focusing on the dynamics and outcomes in parent-child relationships.

Gay Fathers

Men who identify as gay and have taken on the role of being a parent or guardian to a child.

Heterosexual Parents

Parents who are romantically and sexually oriented towards members of the opposite gender.

Divorcing Parents

Refers to the dissolution of a marital relationship by a court, which can significantly impact the emotional and psychological well-being of their children.