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A Man Opening a Small Business, While Applying for a Loan

question 74

Essay

A man opening a small business, while applying for a loan, intentionally omits the fact that he declared bankruptcy recently and still has bad debts. The bank makes the loan based on the information provided by the man. What type of tort is committed by the man?


Definitions:

Net Income Before Taxes

The total earnings of a company before tax expenses have been deducted.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income.

Interest Expense

The cost incurred by an entity for borrowed funds.

Tax Rate

The percentage at which an individual or corporation is taxed.

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