The Risk of Making a Loan Is

question 463

Multiple Choice

The risk of making a loan is

• A) earning profits that are too high and cause higher taxes.
• B) the risk that the lender does not pay.
• C) the risk that the borrower does not pay.
• D) called "default risk" when taxes are not paid.

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Definitions:

Effective Teams

Groups of individuals working together cohesively towards a common goal, characterized by clear communication, mutual respect, and the ability to resolve conflicts constructively.

Teams Competency

Refers to the collective skills, abilities, and expertise that members of a group bring to achieve its objectives.

Organizational Goals

These are strategic objectives that a company aims to achieve; they serve as guiding principles that drive the organization's direction and decision-making processes.

Formal Groups

Groups created with a specific purpose or goal, often within organizational contexts, characterized by structured roles and responsibilities.