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Small units often depend on money lenders because they lack the credit worthiness to raise:
ACapital from capital markets
BLabour from nearby villages
COrders from parent units
DSkills from their owners
Answer & Solution
Correct answer: A. Capital from capital markets
1. They begin with a small capital base.
2. Banks want collateral they cannot give.
3. So they cannot raise capital from the markets.
_Source: NCERT Class 11 Business Studies, Chapter 9, Small Business and Entrepreneurship._
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