An organization should include independent members on its board of directors because they

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Select one:

a. understand the inner workings of the company.

O b. represent management's interests.

O c. provide an objective perspectives

O d. are less likely to engage in unethical behavior.

Why do lending institutions carefully assess how well a business meets certain criteria before making a loan?

Select one:

O a. To reduce risk

• b. To provide service
• c. To improve relations
• d. To prevent theft

What factors should businesses consider when determining financing needs to determine whether they can repay the debt?

Select one:

O a. Depreciation

O b. Liquidity

c. Inventory

O d. Equity