When a Small Business Is Refused a Loan Because It

question 107

Multiple Choice

When a small business is refused a loan because it is not profitable and deemed a poor credit risk,the owner can usually turn to ________ as a source of short-term funds.

• A)venture capital companies
• B)trade credit
• C)stockbrokers
• D)loans from insurance companies

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Definitions:

Negative Contrast Effects

A psychological phenomenon where an individual's perception of an option is negatively influenced by a comparison with a better option.

Reinforcement

A process in operant conditioning that increases the likelihood of a behavior being repeated, which can be either positive (by adding a stimulus) or negative (by removing a stimulus).

Negative Contrast Effect

The effect in which a shift from high to low reward magnitude produces a lower level of responding than if the reward magnitude had always been low.

Reward

A beneficial stimulus that increases the likelihood of a behavior being repeated when it follows that behavior.