1. Which institutional creditor is least willing to take credit risk?

A. Banks

B. Vendors

C. Factors

D. Suppliers

2. Asset-based lendors ____

A. Tend to charge much lower interest than banks

B. Tend to charge the same amount of interest as banks

C. Tend to charge higher interest rates than banks

3.

What does the SBA do?

A. Invests in ventures that have a social impact

B. Loans money directly to entrepreneurs

C. Guarantees loans made by private institutions

D. Reviews investment terms made by investors in startups

4. You and your business partner are joint and severally liable for a $1 million business loan. When your partner goes bankrupt and cannot contribute to the repayment of the loan, how much of the $1 million load due you have to pay back yourself?

A. Half of it

B. None of it

C. All of it