Question

1. Order the following short-term funding sources from those who are willing to accept high credit risks to those who are only willing to accept low credit risks. (2)

   		"Banks, factors, asset-based lenders"
   		"Banks, asset-based lenders, factors"
   		"Asset-based lenders, factors, banks"
   		"Factors, asset-based lenders, banks"
   		"Factors, banks, asset-based lenders"

"In a strategic partnership, the larger firm will often ______. (2) "

		Will accept a lower return since they plan on acquiring the smaller firm after the partnership.
		Will accept a lower return since they plan on gaining a market advantage from the smaller firm.
		Require a higher return since they provide market access for the smaller firm.
		Require a higher return since they are making an equity investment in the smaller firm

Answer 1

Option 5: Factors, banks, asset-based lenders.

Asset based lenders have collaterals to secure. Bank loans are given through scrutiny, Factoring is more riskier as it may be given to high risk parties.

In a strategic partnership, the larger firm will often...

Option 2 : will accept a lower return since they plan on gaining a market advantage from the smaller firm.

larger firm offers capital and other capabilities and smaller firm offers specialized technical or creative expertize.