Multiple Choice
A banker is analyzing a company which operates in the petroleum industry.Which of the following might be a major consideration in determining whether the company should receive a loan?
A) The petroleum industry suffers from political pressures concerning the selling price of its products.
B) Inflation has been high for several years in a row.
C) All companies in the petroleum industry use the same accounting principles.
D) The company has a large amount of interest payments related to many outstanding loans.
Correct Answer:
Verified
Correct Answer:
Verified
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