Explain how a company’s permanent working capital needs differ from its seasonal working capital needs.
Answer to relevant QuestionsRank the importance of the five basic credit issues described in the text. Using the example in the text, develop a list of questions that a loan officer should ask Marcus Wade to gain a better understanding of the risks involved in lending to Wade’s Office Furniture. Generally, a high current ratio is an indicator of good liquidity. Under what circum-stances or conditions could a high current ratio be an indicator of problems with the company’s current assets? Subprime loans have higher loss rates than many other types of loans. Explain why lenders offer subprime loans. Describe the characteristics of the typical borrower in a subprime consumer loan. What different sources of revenue are available from credit card lending? Outline the clearing process with a credit card transaction. What is the biggest risk in credit card loans?
Post your question