Why Do Banks Require That Business Loan Applications Be Accompanied

question 42

Multiple Choice

Why do banks require that business loan applications be accompanied by cash budgets?

• A) To determine how much cash to loan
• B) To determine whether the loan will be a short-term or long-term loan.
• C) To determine whether the business will be profitable
• D) To calculate the expected return it receives from giving the loan

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Definitions:

Population Size

The total number of individuals or units in the group that a study or statistical analysis is concerned with.

Marketing Segmentation

The process of dividing a market into distinct subsets of consumers with similar needs or characteristics, allowing for targeted marketing strategies.

Different Groups

Distinct categories or clusters in which data points are divided based on specific characteristics or treatments.

Confidence

The feeling of trust or belief in someone or something; in statistics, it refers to the degree to which one can be certain in the accuracy of a result.