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Sable Company Is Seeking a Short-Term Loan from Its Local

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Essay

Sable Company is seeking a short-term loan from its local bank.The banker needs assurance that the company will be able to repay the loan.Describe three financial ratios the banker should consider including in the loan approval process.What information does each of your selected ratios provide?


Definitions:

Variability

The degree to which data points in a distribution or set diverge from the central value (mean or median), indicating how spread out the data are.

Symmetry

The property where an object or design is balanced and proportionate, often mirroring one side to another.

Performance Management

The ongoing process of communication between a supervisor and an employee to ensure the achievement of organizational goals.

Establishing Standards

The act of defining benchmarks or criteria against which processes, products, or activities can be measured or judged.

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