Weak management and inability to take decisions is one of the external causes that lead to financial failure.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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%09 l.
Weak management and inability to take
decisions is one of the external causes that
lead to financial failure.
True
False
Sherrod Model is used by banks to assess
the credit risk when granting loans to
economic projects, as the loans are divided
into five categories according to the
degree of risk.
True
ralse
The main: point of difference between the
analytical models to predict financial failure
is the difference in the relative weight
given to each financial ratio that is used,
and in the number of ratios used as
independent variables.
True
False
II
Transcribed Image Text:%09 l. Weak management and inability to take decisions is one of the external causes that lead to financial failure. True False Sherrod Model is used by banks to assess the credit risk when granting loans to economic projects, as the loans are divided into five categories according to the degree of risk. True ralse The main: point of difference between the analytical models to predict financial failure is the difference in the relative weight given to each financial ratio that is used, and in the number of ratios used as independent variables. True False II
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