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Evaluate the Following Argument: "Small Businesses Generally Have to Pay

Question 88

Essay

Evaluate the following argument: "Small businesses generally have to pay more for funds they borrow from banks than they would if they raised the funds in financial markets. This shows that small businesses must value the personal relationships they maintain with bank loan officers. Otherwise, they would be taking advantage of the cheaper funds available in financial markets."

Correct Answer:

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The argument is incorrect. Small busines...

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