Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. general management
  3. why will lenders lend only a certain percentage of

Why will lenders lend only a certain percentage of the value of a transaction?

90.2K

Verified Solution

Question

General Management

Why will lenders lend only a certain percentage of the value ofa transaction?

Answer & Explanation Solved by verified expert
3.8 Ratings (458 Votes)
Lenders only lend a certain percentage of the value of a transaction in order to mitigate the risk associated with bad debts Since lending money is risky due to the prospects uncertainty and contingencies thus    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Find the green's function then find the solution y\"+4y=x y(0)=0, y'(1)=0

Advance Math
Q

\"A key assumption is that crossing over is random. In which case, would you have an...

Biology
Q

1. List the respiratory muscles and outline the basic process of inspiration and expiration. 2. Describe lung...

Medical Sciences
Q

Between the two types of project audits, which type do you believe provides the most pressure...

Operations Management
Q

A mutation in gene X overrides the effect of a previous mutation in gene Y...

Biology
Q

6 A professor is interested in whether giving a practice exam has an impact on...

Algebra
Q

Given that f x x 8x and g x x 2 calculate a fog 3...

Algebra
Q

Abdulaziz is a Saudi citizen has submitted his zakat return including the following information for...

Accounting
Q

Problem 6-1A Calculate ending inventory and cost of goods sold for tour inventory methods (LO6-3)...

Accounting
Q

Buse Corporation is investigating buying a small used aircraft for the use of its executives....

Accounting
Q

Contribution margin Sally Company sells 25,000 units at $34 per unit. Variable costs are $23.80...

Accounting
Q

For financial reporting, since they are paid over a number of periods, installment notes should...

Accounting