Lenders Use the Financial Statements of Governments and Not-For Profits

question 25

True/False

Lenders use the financial statements of governments and not-for profits just as they would those of businesses, that is, to help assess the borrower's credit-worthiness.

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Definitions:

Technological Improvement

Enhancements in technology that increase the efficiency of production or the quality of goods and services.

Labor Union

An organization formed by workers to protect their rights and interests, often negotiating wages, work hours, and working conditions with employers.

Structural Unemployment

A form of unemployment caused by shifts in the economy, such as technological changes or global competition, that create a mismatch between the skills workers have and the skills needed by employers.

Frictional Unemployment

Short-term joblessness experienced by individuals transitioning between jobs, careers, or locations, often considered a natural and healthy part of a dynamic economy.