In 2012, an article in the Wall Street Journal described how Amazon had begun making loans to
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In 2012, an article in the Wall Street Journal described how Amazon had begun making loans to the small businesses that sell on its site. Many of these businesses had previously been turned down for bank loans. An Amazon spokesman was quoted as saying: “Our goal is to solve a difficult problem for sellers.”
a. Why might Amazon have been willing to make loans to small businesses that banks were not willing to make?
b. What would be the advantages and disadvantages to a small business of borrowing from Amazon rather than from a bank? What would be the advantages and disadvantages to Amazon of making the loan?
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Related Book For
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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