Which situation is generally a consequence of overly lenient loan repayment terms A. The borrower does not have the needed cash flow for operations. B. The lender defers solely to the customer's judgment. C. The borrower uses the funds for purposes other than loan repayment. D. The lender has much control over how funds are used by the borrower.

Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter18: Acquiring Capital For Growth And Development
Section18.2: Long-term Debt Financing
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Question 46 of 50.
Which situation is generally a consequence of overly lenient loan repayment terms?
A. The borrower does not have the needed cash flow for operations.
B. The lender defers solely to the customer's judgment.
C. The borrower uses the funds for purposes other than loan repayment.
D. The lender has much control over how funds are used by the borrower.
Mark for follow up
Transcribed Image Text:Question 46 of 50. Which situation is generally a consequence of overly lenient loan repayment terms? A. The borrower does not have the needed cash flow for operations. B. The lender defers solely to the customer's judgment. C. The borrower uses the funds for purposes other than loan repayment. D. The lender has much control over how funds are used by the borrower. Mark for follow up
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