Which source of financing often requires a business owner to put up a

QUESTION

Which source of financing often requires a business owner to put up a substantial amount of his or her personal funds to demonstrate commitment to the success of the operation?

A) angel investors
B) peer-to-peer lenders
C) venture capitalists
D) banks
E) friends and family

ANSWER

Answer: D
Explanation: D) Lenders often insist that entrepreneurs put up as much as 30 percent of startup costs as proof of commitment to a new business.