With respect to the financing of a business, which one of the following statements is accurate?

Question

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Banks are generally risk averse when it comes to lending money to businesses. They need to ensure that the company has a solid business plan, a good credit history, and adequate collateral before lending money. Additionally, they typically charge interest on loans, which can reduce potential returns for the business. Love money is not the most popular form of debt financing, as it refers to funds invested by friends and family. Suppliers typically do not provide long-term financing, as they are not equipped to take on the risk involved in lending money. Debt financing does not refer to money invested by the owner, but rather refers to funds borrowed from banks, investors, or other parties.

With Respect to the Financing of a Business, Which One