please explain each answer

1. Identify the issues or risks in small business/self-employed, private client, and closely held company lending and ways to analyze and assess these risks GCELA. When underwriting the annual debt service requirement for a business line of credit, it is prudent to use the A. interest actually paid over the last 12 months. B. average interest actually paid over the last 36 months. C. anticipated interest to be paid over the next 12 months. D. interest that would be paid over the next 12 months assuming a fully extended line. 2. Define global cash flow GCF_2. All of following statements are part of the definition of global cash flow EXCEPT: A It quantifies cash inflows and outflows for individuals and their closely held businesses B. The goal is to surface contingent risks that could negatively impact debt service C Both business and personal debt service is included in debt service D. The tool provides a roadmap that addresses all situations 3. Identify and define forms of global cash flow analysis used by bankers GCF_3. Which of the following is NOT a form of global cash flow analysis used in hanking: A Public companies with concentrated shareholder positions B. Real estate investors with multiple holdings C. Professional clients with business interests D. Subchapter Scorporations and their shareholders 4. Identify situations where global cash flow analysis is appropriate GCF4. What are the most important considerations when determining if a business's cash flow should be included in the global cash flow? A. Borrower can document ownership and access to the business's cash flow, and the business is sufficiently liquid to support its withdrawal. B. Borrower is the majority or sole owner of the business and maintains exclusive or majority control over its cash flow. C. Business has financial statements and tax returns prepared on the same accounting basis as the borrower's and these demonstrate little or no financial co-dependency. D. Business has the capacity to assume actual contingent liabilities without incurring excess leverage and/or exceeding prudent debt service requirements, 5. Identify situations where global cash flow analysis is appropriate GCFSB. When considering Form 1040 "Wages, salaries, and tips as a source of cash in the global cash flow formula, one must recognize that the amount reported A. is net of any pre-tax payroll allocations B. Includes amounts not corroborated be a W-2. c. is gross of Medicare deductions, D. does not include wages from closely held corporations. 6. Identify situations where global cash flow analysis is appropriate GCFSC. When considering Form 1040 "capital gains" as a source of cash in the global cash flow formula, the A. reported gain should not be used as a source of cash, whether recurring or nonrecurring. B. reported gain should be used as a source of cash only if subsequent asset sales are likely to take place. C asset selling prices should be used as a source of cash if sales proceeds were not reinvested in another asset D. asset selling price minus the gain should be excluded to isolate the recaptured depreciation amount. 7. Identify situations where global cash flow analysis is appropriate GCFSF. Which of the following interest amounts, reported on the Form 1040 Schedule B ("Interest and Ordinary Dividends"), should be excluded in the global cash flow formula? A. accrued interest on discounted bonds B. interest from partnerships or other pass-through entities Cinterest received from your own financial institution D. verified interest received from your own private mortgages 0 Section 9: Detecting Problem Loans 8. List common management and operating problems that can lead to business failure and loan losses Which of the following events is most likely to lead to business failure? a Recruiting a new CEO from a major industry competitor b. Falling to achieve budgeted sales growth in one year c Receiving a term loan from the majority shareholders d. Controlling personnel costs by hiring family members 9. Identify both financial symptoms and operational and management couses of a company's problem loon given information about the company's management, operations, external influences, and historical financial statements. Which of the following warning signs of financial difficulty would be less detectable on a company's financial statement? a. Slow payment of key trade suppliers and delinquent tax payments b. Deferral of equipment maintenance and cutback on staff training, Higher line borrowings and sale of production assets. d. Lower cash balances and reduction of staff through layoffs 10. List and accurately describe the five stages of problem loan resolution. Once a problem loan has been identified, which of the following best describes the order in which a resolution should be reached? a. Identify the causes of the problem, determine resources available to cure the problem, and implement a plan to address the problem b. The borrower and banker recognize a problem, then examine internal operations and external factors to determine the cause and assess resources available to address the problem After identifying a problem and determining the cause/s (internal operations and/or external factors), the banker develops a plan to address the problem d. After the internal operational issues and external factors that led to a problem are determined, the banker determines whether to call an event of default 11. Identify and describe benefits and limitations of best practice processes for analyzing and working with identified problem loans. As part of analyzing a problem loan, a banker will complete of the following steps EXCEPT: a. Complete a new lien search b. Perform an updated financial analysis Hire a turnaround consultant d. Order an updated appraisalon collateral updated appraisal on collateral 12. Describe the four viable problem-loan options: outplacement, liquidation, bankruptcy, and workout. ABC Corporation has encountered financial difficulty in the past year and experienced substantial management turnover during that time. Although loan payments remain current and the bank has attempted to work with the new management team to identify causes of the performance problems, th company has decided to file bankruptcy. Which of the following effects of the bankruptcy is LEAST likely to affect the bank? a. Monthly loan payments received prior to the filing must be returned. b. No legal actions to collect the loan may be taken. C. Additional collateral assigned in the last three months may be voided. d. The bank may not setoff its claims against the company's accounts at the bank