97.3k views
3 votes
"which activity exposes this company to the most risk of being issued an emergency loan?"

User Morphed
by
8.6k points

1 Answer

7 votes
The answer for this question is: Purchasing plant and equipment that worth more than the cash that they have.
By doing this, the company will be forced to find some funds that is not included in Company's budget, and the easiest method to do that is by searching for an emergency loan or by selling other assets that are not crucial for their operation.
User Sebastian Starke
by
8.5k points

No related questions found