It is important to get the bank to grant you the loan you need. What do you think the bank will consider before granting it if it only had to focus on one thing? Of the three alternatives, which one do you consider to be the most relevant for the bank? a. sales volume b. confirming that the sum of the expected profit after taxes plus depreciation exceeds the annual repayment. c. Ensuring that profit before interest and taxes is approximately 5% of sales
It is important to get the bank to grant you the loan you need. What do you think the bank will consider before granting it if it only had to focus on one thing? Of the three alternatives, which one do you consider to be the most relevant for the bank? a. sales volume b. confirming that the sum of the expected profit after taxes plus depreciation exceeds the annual repayment. c. Ensuring that profit before interest and taxes is approximately 5% of sales
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
It is important to get the bank to grant you the loan you need. What do you think the bank will consider before granting it if it only had to focus on one thing? Of the three alternatives, which one do you consider to be the most relevant for the bank?
a. sales volume
b. confirming that the sum of the expected profit after taxes plus
c. Ensuring that profit before interest and taxes is approximately 5% of sales
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