John, who needs funding for his small business, approaches a few lenders for funds. Which of the following will be true in this situation?

Question

Quizplus · Accepted Answer

Since John is seeking funding for an existing small business, the lender(s) will typically scrutinize its track record (profitability, cash flow, existing debts, etc) to determine whether or not it's a potentially profitable venture. This will help them assess John's ability to repay the loan on time. The other options are not applicable in most cases. The lenders do not need to have a say in managing John's business; his ability to attract funding depends on factors such as his credit score and character assessment; and the lender(s) may conduct a credit check to evaluate John's creditworthiness.

John, Who Needs Funding for His Small Business, Approaches a Few