A Company with an Altman Z-Score of 3

question 49

True/False

A company with an Altman Z-score of 3.15 should not be granted a loan due to a high default probability.

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Definitions:

Physiological Need

Basic physical requirements for human survival, such as food, water, and shelter, as identified in Maslow's hierarchy of needs.

Need for Sleep

Refers to the essential, intrinsic requirement of all human beings (and many animals) for rest through sleep to maintain physical, mental, and emotional health.

Maslow's Need Hierarchy

A psychological theory proposing that human needs are arranged in a hierarchy, starting from basic physiological needs to self-actualization.

Growth Need Category

A classification of needs that focuses on an individual's desire for personal development, competence, and self-fulfillment.