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The Environment Refers to the Local,state,national,and Global Laws and Regulations

question 12

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The environment refers to the local,state,national,and global laws and regulations that affect businesses.


Definitions:

Covenant Provisions

Conditions set by lenders in a loan or bond agreement that the borrower must abide by, aimed at protecting the lender's interests.

Credit Risks

This is the risk that a borrower will default on any type of debt by failing to make required payments, impacting lenders and investors.

Credit Analysis

The process of evaluating an applicant's loan request or a corporation's debt issue in order to determine the likelihood of the borrower repaying the loan.

Financial Statement

A written report which quantitatively describes the financial health of a company.

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