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.

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter10: Financing And Producing Goods
Section: Chapter Questions
Problem 20AA
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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.
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