The Most Common Source of Equity Funds Used to Start

question 50

Multiple Choice

The most common source of equity funds used to start a small business is:

• A)private investors or "angels."
• B)loans from commercial banks.
• C)the entrepreneur's pool of personal savings.
• D)public stock issues.

---

Definitions:

Appraisal Costs

Costs associated with the inspection and testing of materials and products to ensure quality standards are met.

Defects

Imperfections or faults in a product that cause it to be unsuitable for its intended use or significantly reduce its usability.

Throughput Accounting

An accounting method that focuses on the rate at which a company generates money through sales, rather than on traditional production costs.

Short-term Focus

Concentration on immediate goals or results, often at the expense of long-term objectives.