One Reason Lenders May Require a Large Net Worth Before

question 38

Multiple Choice

One reason lenders may require a large net worth before making a loan is because:

• A) then the borrower does not need the funds.
• B) it tells the lender the firm has good employees.
• C) it is one way to treat the problem of moral hazard.
• D) banking laws require firms have significant net worth before a bank can make a loan.

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IRS

The Internal Revenue Service, a U.S. government agency responsible for tax collection and tax law enforcement.

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Relevant data and documents related to tax laws, filing requirements, rates, and deductions applicable to individuals or businesses.

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.