Tom Ltd is a company that was hurt by a major downturn in the economy. It previously obtained a significant loan from Jenson Bank, and when Tom Ltd was unable to make its loan repayments, the bank made an agreement with Tom Ltd to become involved in the management of that company. Under the agreement between the two entities, Tom Ltd.'s managers had to obtain authority from the bank for acquisitions over $10 000 and were required to have bank approval for the company's budgets.