Evan Has Received Permission from His State to Form a Corporation

question 64

Multiple Choice

Evan has received permission from his state to form a corporation for his startup,expecting his liability would be limited to the amount of his investment.But his bank asked him to assume personal liability before it would grant him a business loan.Why would the bank make this demand?

• A)Evan did not invest enough into the business.
• B)Evan is the only stockholder.
• C)Evan has more assets than the business.
• D)Evan's business has no credit history.

---

Definitions:

EOQ Model

The Economic Order Quantity model, a formula used in inventory management to determine the optimal order size that minimizes total holding and ordering costs.

Inventory Management

The supervision of non-capitalized assets (inventory) and stock items to ensure an adequate supply without excessive oversupply.

Important

A characteristic denoting something of great significance or value in a specific context or situation.

ABC Analysis

A method of categorizing inventory into three classes, with 'A' items being of high value, 'B' items of moderate value, and 'C' items of lower value, to prioritize inventory management efforts.