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Lenders Prefer to Lend to Firms with High Net Worth

question 36

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Lenders prefer to lend to firms with high net worth because


Definitions:

Meaning

The significance or interpretation of a word, phrase, sentence, or symbol.

Bonding

The process of creating a secure financial guarantee, typically via a bond, that protects against losses from failure to meet contractual obligations or perform duties.

Fidelity Bond

A form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals, often employees.

Surety Bond

A three-party agreement where the surety guarantees to the obligee that the principal will fulfill an obligation or perform as agreed.

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