True or False:
1. An existing business seeking expansion capital or funds for temporary use has a much easier job obtaining both debt and equity than a business that lacks an operating history or is seeking longer-term financing.
2. Commercial finance companies have more flexible lending arrangements than traditional banks.
3. Factoring is a cheap method for turning accounts receivable into cash.
4. Which of the following legal issues should be of least concern to an entrepreneur building a high-growth venture?
A. Employee compensation strategies.
B. Federal and state regulations
C. Tax shelters
D. Mergers and acquisition
5. Because banks may earn as little as one percent net profit on total assets, they are especially sensitive to the possibility of a _____.
A. Deferral
B. Early Payoff
C. Default
D. Merger