If you're starting a new business and you borrow money from family members,you should be sure to _____.
A)designate lenders as part owners
B)draw up a formal loan agreement
C)borrow as little as possible
D)repay the money in the first year

Question

Quizplus · Accepted Answer

Drawing up a formal loan agreement when borrowing money from family members for a new business ensures clarity and professionalism, setting clear terms for repayment and helping to prevent misunderstandings or conflicts.

If You're Starting a New Business and You Borrow Money