Which of the following is true about bank financing?
A)Like angel investors and venture capitalists,banks invest in a business.
B)Banks are more interested in ensuring that the entrepreneur's opportunity will survive long enough to ensure repayment.
C)Banks typically focus on investing in a small number of industries.
D)Banks are concerned with the long-term potential for returns.
E)Banks typically provide more capital as the new venture becomes more established.

Question

Quizplus · Accepted Answer

Banks prioritize the ability of a business to repay the loan, focusing on the short to medium-term financial health of the company rather than long-term potential or specific industry focus. Unlike angel investors or venture capitalists, banks do not invest in businesses but provide loans that need to be repaid with interest.

Which of the Following Is True About Bank Financing