The key source of finance for small and medium size firms in most countries is
A) Venture capital companies
B) Private financing companies
C) Financial markets
D) Public institutions
E) Banks

Question

Quizplus · Accepted Answer

Banks are considered to be the key source of finance for small and medium size firms in most countries. This is because banks provide a range of financial services to these firms, including lending, deposit taking, and investment services. Additionally, banks are more readily accessible to small and medium size firms than other sources of finance, such as venture capital companies, private financing companies, financial markets, or public institutions.

The Key Source of Finance for Small and Medium Size