Recall from Chapter 1 that Dry Supply is a wholesaler of dry cleaning equipment, cleaning supplies,...

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Recall from Chapter 1 that Dry Supply is a wholesaler of dry cleaning equipment, cleaning supplies, and laundry soap. The company, which is located in central Kansas, has been in business over 50 years. Anne Schippel, business banker, in conjunction with her manager has determined that this business is consistent with the industries targeted by her bank, as well as being within the bank's designated market area. She has made a couple of introductory calls and knows that Dry Supply currently is owned by two sisters and is organized as an S corporation. Based on this information, she can begin making a preliminary assessment of the loan request. Answer the following questions using the legal structure and life cycle information you learned about in this lesson. 1. What initial assessment can Anne Schippel make based on the legal structure of Dry Supply? 2. 3. 4. Based on the age of the business what life cycle stage is Dry Supply? What characteristics or additional information would help you make this assessment? What key risk factors should be considered? What are some additional issues Anne Schippel should consider? Recall from Chapter 1 that Dry Supply is a wholesaler of dry cleaning equipment, cleaning supplies, and laundry soap. The company, which is located in central Kansas, has been in business over 50 years. Anne Schippel, business banker, in conjunction with her manager has determined that this business is consistent with the industries targeted by her bank, as well as being within the bank's designated market area. She has made a couple of introductory calls and knows that Dry Supply currently is owned by two sisters and is organized as an S corporation. Based on this information, she can begin making a preliminary assessment of the loan request. Answer the following questions using the legal structure and life cycle information you learned about in this lesson. 1. What initial assessment can Anne Schippel make based on the legal structure of Dry Supply? 2. 3. 4. Based on the age of the business what life cycle stage is Dry Supply? What characteristics or additional information would help you make this assessment? What key risk factors should be considered? What are some additional issues Anne Schippel should consider?

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Based on the legal structure of Dry Supply being organized as an S corporation Anne Schippel can assess that the business is a separate legal entity f... View the full answer