Question: Small businesses applying for loans often do not have audited financial statements. Based on this, following statement is True or false? Explain why Local branch

Small businesses applying for loans often do not have audited financial statements. Based on this, following statement is True or false? Explain why

Local branch managers can't be trusted to make good loan approval decisions because, lacking hard numbers, they would make decisions based on very subjective criteria. For that reason, loan applications by small businesses tend to be referred to higher-level bank managers for processing.

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