Final answer:
As a loan officer at a bank, you would need to evaluate the loan application carefully and request detailed financial statements from the borrower. Based on the financial statements, you can make an informed decision to approve or deny the loan. Offering a loan with higher interest rates is an option if there are some risks associated with the loan. option d is answer
Step-by-step explanation:
In this scenario, as a loan officer at a bank, you would need to carefully evaluate Arthur Dimarsky's loan application before making a decision. It is not advisable to provide the loan without further inquiry (option A) as this would be a reckless decision without sufficient information.
You would likely request detailed financial statements (option B) from Cape Crusaders Corp to assess their financial health, cash flow, profitability, and ability to repay the loan. This would include reviewing their balance sheet, income statement, and cash flow statement.
Based on the information obtained from the financial statements, you would make a decision whether to approve or deny the loan application (option C). If Cape Crusaders Corp does not meet the necessary financial criteria or demonstrates significant financial risks, denying the loan may be the appropriate course of action.
If Cape Crusaders Corp does meet the necessary financial criteria but presents some risks, you could offer a loan with higher interest rates (option D). This would compensate for the additional risk associated with the loan. option d is answer