All of the Following Are Disadvantages of a Start-Up EXCEPT

question 24

Multiple Choice

All of the following are disadvantages of a start-up EXCEPT

• A)absence of initial name recognition.
• B)access to revolving credit line.
• C)difficulty in financing.
• D)it starts with a clean slate.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies where the investor holds significant influence but not full control or majority ownership.

Dividends

Payments made by a corporation to its shareholders, typically from profits, on a per-share basis.

Reduction

The act of decreasing or lowering in amount, quantity, or degree.

Amortized Cost

Amortized cost is an accounting methodology for valuing certain financial assets or liabilities, considering both the initial principal and the interest accrued over time.