A financial institution contemplating giving a loan to an entity would be most interested in: O the entity's ability to generatevash flows. O an entity's ability to generate profits. O an entity's ability to pay its employees. O an entity's ability to pay its suppliers.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 1.2P
icon
Related questions
Question
A financial institution contemplating giving a loan to an entity would be most interested in:
O the entity's ability to generatevash flows.
O an entity's ability to generate profits.
O an entity's ability to pay its employees.
O an entity's ability to pay its suppliers.
Transcribed Image Text:A financial institution contemplating giving a loan to an entity would be most interested in: O the entity's ability to generatevash flows. O an entity's ability to generate profits. O an entity's ability to pay its employees. O an entity's ability to pay its suppliers.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Fundraising
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax