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Why Would a Banker Reject a Company's Application for a One-Year

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Essay

Why would a banker reject a company's application for a one-year loan based on information taken from the company's balance sheet?


Definitions:

Rent Revenue

Income earned from leasing out properties or equipment to tenants or lessees.

Decrease in Assets

A reduction in the value or quantity of the assets held by a company.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on a portion of its profits or losses.

Revenue

The overall income that a corporation gathers from the sales of merchandise or offering of services throughout a designated period.

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