If Banks Refuse to Lend Money to a Startup Business

question 134

True/False

If banks refuse to lend money to a startup business, the owner usually cannot convince his or her vendors and suppliers to extend trade credit either.

---

Definitions:

Shortages

A situation in which the demand for a product or service exceeds its supply in a market.

Demand

The desire and ability of consumers to purchase goods and services at given prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specific time period.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded at various prices.