Tasha, who owns a bakery applying a loan from your bank to buy cheese as inventory. Would you approve the loan application?

A.No. A request for loans to buy cheese is unacceptable because this should be financed by normal cash flows.

B.Yes. Tasha owned a bakery, so her business can become collateral for the loan.

C.No. There is no such thing as loan for buying cheese.

D.Yes. The loan request should be approved as the purchase of the cheese is for the business purposes.