Please help me with the 4 questions below. These questions relate credit application and Loan security.

2.Which of the following is NOT a reason why the ownership structure of a company is important for the credit application?

a.Depending on the ultimate beneficial owners, regulations may prevent us from lending to the company.

b.Ownership determines who is liable for the loans taken by the company.

c.It gives an idea of who the primary decision-makers are and the effectiveness of the decision-making process.

d.The tangible net worth of the company owners can be evaluated when considering the collateral of the company.

6.Which of the following is TRUE regarding management analysis?

a.A risk averse management team is preferred when evaluating the creditworthiness of a company.

b.The reputation of the management team should be evaluated by interviewing employees of the company.

c.Management analysis is always necessary, even for low-risk borrowers.

d.Management analysis is critical when dealing with a high-risk borrower.

4.Which of the following statements is TRUE about reviewing a borrowers history and background?

a.Extending a loan to a newer company is safer than an older company because the lender can place stricter covenants.

b.For existing borrowers, the most important part of the annual review process is to review changes that have occurred since the last review.

c.You should review what an existing borrowers company offers every year to ensure they have not changed their primary market or value proposition.

d.A borrowers history with the financial institution should not be used for annual reviews as it may skew the credit evaluation with non-current information.

8.Which of the following statements is TRUE regarding loan security?

a.Loan security protects the lenders claim against unforeseen and unfavorable events.

b.Financial institutions should always approve loans if the value of the security can cover the value of the loan.

c.An analyst should aim to secure a loan with one of each type of loan security.

d.It is unnecessary to take security if the company has a good history with the financial institution.