Solved

Because of the Risk/return Tradeoff, Small Businesses That Borrow Money

Question 108

Multiple Choice

Because of the risk/return tradeoff, small businesses that borrow money repay it with interest at the ________.


A) prime interest rate
B) prime interest rate minus a few percentage points
C) prime interest rate plus a few percentage points
D) lender's cost of capital

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q4: A(n)_ is a private,for-profit organization that purchases

Q14: The "wait to go effective" is the

Q103: Rather than piecing together their startup capital

Q104: Before making a loan to a business

Q105: Venture capital companies are an important source

Q107: The biggest benefit of a public stock

Q109: Bootstrapping is a method of raising capital

Q110: Publicly-held companies must file periodic reports with

Q111: For small businesses, _ are the very

Q112: Before entering into any partnership arrangement, entrepreneurs