Which One of the Following Statements About Relationship-Based Banking Is

question 2

Multiple Choice

Which one of the following statements about relationship-based banking is correct?

• A)There is a danger that the bank will end with monopolistic power given the information it collects on the firm.
• B)Relationship-based banking typically makes firms more dependent on internal funds.
• C)A close, long-term relationship between a bank and a firm will increase asymmetry of information between the two.
• D)None of the above.

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Definitions:

Customer Perspective

An aspect of business strategy that focuses on understanding and meeting the current and future needs of customers.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Overhead Volume Variance

A measure of the difference between the estimated and actual overhead costs, due to changes in production volume.

Controllable Costs

Expenses that a manager or business can influence or regulate, such as marketing costs or raw material purchases.