When ____________________ in Performance Is Observed, and Corrective Action Is

question 47

Short Answer

When ____________________ in performance is observed, and corrective action is taken, it is important to verify that performance has returned to normal levels.

---

Definitions:

Spontaneous Financing

Financing that arises naturally from the normal operation of a business, such as trade credit from suppliers.

Seasonal Working Capital

Additional funds a business may need at certain times of the year to manage increased operational activities.

Clean-Up Requirements

Environmental or legal directives that mandate the remediation of pollution or contaminants from a site.

Compensating Balance

A minimum account balance that a borrower is required to maintain with a lender, which can reduce the effective amount of loan available to the borrower.