Anthony Newton Wants to Buy a New Sail Boat

question 92

Multiple Choice

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

• A) He is sharing the interest rate risk with his lender.
• B) He is pledging valuable assets that can be seized if the loan is not repaid.
• C) He is taking a larger stake in the asset he is purchasing.
• D) He is repaying the loan over a faster period of time.
• E) None of these.

---

Definitions:

Team Norms

Shared expectations and rules that guide the behavior of team members, influencing how they interact, communicate, and work together towards goals.

Identification-based Trust

Trust based on a mutual understanding of each other's intentions and values.

Team Roles

Specific functions or responsibilities assigned to individuals within a team, often designed to enhance overall team performance.

Positive Expectations

The anticipation or belief that future events, outcomes, or actions will result in positive or favorable results.