Shonta started a graphic design firm a year ago.The business has done well, but it needs a lotmore equipment, computers, and employees tocontinue expanding. Shonta thinks she can getall the money she will need from her bank. Whatadvice might you give to her?a. She is right—the bank is likely to lend her asmuch as she needs because banks primarilyfocus on supporting small businesses.b. She is crazy—banks do not lend money tosmall businesses but only to well-known,well-established organizations.c. She should sell her business immediatelybefore it fails because most small businessesfail during the first five years.d. She should not accept any new clients sothat she can end the need to add additionalequipment and employees.e. She should consider alternative sources offinancing because banks provide only a portion of the total capital to small businesses.
Shonta started a graphic design firm a year ago.
The business has done well, but it needs a lot
more equipment, computers, and employees to
continue expanding. Shonta thinks she can get
all the money she will need from her bank. What
advice might you give to her?
a. She is right—the bank is likely to lend her as
much as she needs because banks primarily
focus on supporting small businesses.
b. She is crazy—banks do not lend money to
small businesses but only to well-known,
well-established organizations.
c. She should sell her business immediately
before it fails because most small businesses
fail during the first five years.
d. She should not accept any new clients so
that she can end the need to add additional
equipment and employees.
e. She should consider alternative sources of
financing because banks provide only a portion of the total capital to small businesses.
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