Wilbur and Fred run a small farm stand on their property, selling vegetables, fruits, plants, and eggs to support themselves. During a particularly bad season, they tried to get financing from a small rural bank in their community. However, they were unable to obtain financing because:
the small rural bank believed that their business lacked the flexibility to adapt to changing market demands.
they required a huge sum of money to compete in the mass market.
government regulations do not permit financing small rural businesses.
the small rural bank lacked the necessary assets to counter the risks involved with small-business loans.
rural communities have various business guidelines that prohibit rural banks from financing small businesses.
the small rural bank lacked the necessary assets to counter the risks involved with small-business loans.
Explanation: Firms often do not extend loans to small businesses because of lack of collateral.
Wilbur and Fred run a small farm stand on their property, selling vegetables, fruits, plants, and...
Compensation sessionABC International: Solving the Rural BarrierSource: Thunderbird School of Global Management, A unit of the Arizona State University Knowledge Enterprise. 2015. This case was prepared by Erin Bell under the guidance and supervision of Dr. Amanda Bullough, and revised and updated by Drew Helm for the purpose of classroom discussion only, and not to indicate either effective or ineffective managementSiham sat with her family and childhood friend, Leila, in their rural village of Qabatiya, Palestine. Leila had recently returned from...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...