If You Were Asked to Loan Money to a Company

question 15

Multiple Choice

If you were asked to loan money to a company that you feared may be getting into financial difficulties, which of these courses of action would provide you with the most protection from default on the loan?

• A)Rely on the principle of limited liability.
• B)Require a mortgage over a specific asset of the company.
• C)Require the accounts of the company to be audited.
• D)Specify a particular accounting method to be used.

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Definitions:

Organizational Stages

Various phases an organization goes through during its lifecycle, typically including startup, growth, maturity, and decline or renewal.

Codifies Employee Data

The act of organizing and integrating employee information into a systematic and accessible format, often in a database.

Workforce Technology

The use of technology in managing and supporting the workforce, including software for HR management, collaboration tools, and performance tracking systems.

Information Technology

Information Technology (IT) involves the use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.