Explain why the selected ratios identified are important

Reference no: EM13333211

As a lending agency, what criteria would you use to determine how much to grant, to whom, and under what conditions?

There are two parts the questions.

!. First, identify the criteria you would use to determine how much to grant, to whom and under what conditions.

2. Second, as part of your response to 1 above, where applicable under the respective and/or select criteria, please identify the financial ratio's that are critical for supporting lending decisions - please provide the rationale for why the selected ratios identified are important.

The selected ratios are profitability ratio, leverage ratio, liquidity and activity.

Reference no: EM13333211

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