Why Would Parker Bank, in Deciding Whether to Make a Loan

question 48

Multiple Choice

Why would Parker Bank, in deciding whether to make a loan to Davis Company, be interested in the amount of liabilities, Davis has on its statement of financial position?

• A) The liabilities represent resources that could be used to repay the loan.
• B) If Davis already has many other obligations, it might not be able to repay the loan.
• C) Existing liabilities give an indication of how profitable Davis has been in the past.
• D) Parker would be interested in the amount of Davis's assets but not the amount of liabilities.

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Definitions:

Direct Care

Personal health care services provided by clinicians, including assessment, diagnosis, treatment, and interactions directly with patients.

Teaching a Patient

The process of educating a patient about their health condition, treatment options, and self-care practices to promote better health outcomes.

Making Work Assignments

The process of distributing tasks or projects among team members based on their skills, availability, and job roles.

Definition of Nursing

A formal statement outlining the role, responsibilities, and the broad scope of practice of nurses, aimed at promoting health, preventing illness, and caring for individuals throughout their lifespan.