You decide to start a business selling covers for smart phones in a mall kiosk. To buy inventory, you need to borrow some funds. Why are you more likely to take out a bank loan than to issue bonds? A person starting up a small business would be more likely to take out a bank loan, because issuing bonds is a form of (Click to select) finance and would require finding a buyer who would be willing to bear the (Click to select) associated with the loan. For a small, unknown business these costs would usually (Click to select) prohibitive. In the case of (Click to select) , the lending organization acts as the counterparty to the transaction. These organizations overcome problems associated with asymmetric information by using their expertise to screen loan applicants and use standardized loan contracts to (Click to select) transaction costs.