Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The liquidity and cash management performance of short-term financing structure should not be expected from the sector which is expected to develop with long term

image text in transcribed
image text in transcribed
The liquidity and cash management performance of short-term financing structure should not be expected from the sector which is expected to develop with long term partnerships. For this reason, there should be such legal arrangements that the ratios used to measure the performance of banks in the sector need to be differentiated so that a hybrid model is ensured in which the debt and partnership model can be applied together. Select one: True False East match the related stakeholders' expectations and approaches considering why long- term partnership based financing products cannot be implemented widely. They are reluctant to be constantly monitored. Fixed financing costs are preferred as in debt based financing model. They do not want to include banks to their daily business management Due to its ease in risk management, they are more tend to provide short-term financing to customers. In deposit side, they expect same ratios offered by conventional banks. They also prefer to get monthly profit payment. The short-term profit demand of customers lead the increase in usage of debt based financing instead of partnership based financing. Corporate/Entrepreneur Customers Retail Customers Shareholders/Bank Management

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

8th International Edition

1260570517, 978-1260570519

More Books

Students also viewed these Accounting questions