Since Lenders Are Generally Reluctant to Make Loans to a Firm

question 78

True/False

Since lenders are generally reluctant to make loans to a firm to pay dividends, the firm's ability to pay cash dividends is generally constrained by the amount of excess cash available.

---

Definitions:

Confidentiality

The principle of keeping certain information private and not disclosing it without the consent of the person it pertains to.

Physical Needs

Basic requirements including food, water, air, and shelter that are necessary for survival.

Legal Mandates

Laws or regulations that require individuals or organizations to perform certain actions or comply with rules.

Ethical Reasons

Motivations or considerations based on principles of right and wrong conduct.