There is more risk involved in financing a business's early operations,therefore,higher rates of return are expected.

Name: There is more risk involved in financing a business's early operations,therefore,higher rates of return are expected.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Investors and lenders take on greater risk when financing a business's early operations because the company has not yet established a proven track record. As a result, higher rates of return are typically expected to compensate for this greater risk.

There Is More Risk Involved in Financing a Business's Early