Three engineers wish to establish a new business. Their savings are sufficient to provide 60% of...
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Three engineers wish to establish a new business. Their savings are sufficient to provide 60% of the necessary funding and the remaining 40% will be raised from a bank loan. They plan to incorporate the business as a limited company, sharing equity- equally and each with a seat on the board. Explain why the bank would require personal guarantees from each of the engineers before granting a loan. [ Three engineers wish to establish a new business. Their savings are sufficient to provide 60% of the necessary funding and the remaining 40% will be raised from a bank loan. They plan to incorporate the business as a limited company, sharing equity- equally and each with a seat on the board. Explain why the bank would require personal guarantees from each of the engineers before granting a loan. [
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South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st edition
Authors: David M. Maloney, William H. Hoffman, Jr. , William A. Raabe, James C. Young
Posted Date:
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