Lenders protect themselves from conflicts of interest with shareholders through:
ID: 2479219 • Letter: L
Question
Lenders protect themselves from conflicts of interest with shareholders through:
a.
cooperative agreements signed by shareholders and lenders
b.
limiting the amount of funds bondholders lend
c.
loan agreements that prohibit borrowing companies from undertaking excessive risk
d.
offering lenders a share of profits
a.
cooperative agreements signed by shareholders and lenders
b.
limiting the amount of funds bondholders lend
c.
loan agreements that prohibit borrowing companies from undertaking excessive risk
d.
offering lenders a share of profits
Explanation / Answer
loan agreements that prohibit borrowing companies from undertaking excessive risk
loan agreements that prohibit borrowing companies from undertaking excessive risk