Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has told her accountant to provide the bank with a balance sheet. Colleen has decided to omit the other financial statements because there was a net loss during the past year

Discuss the following questions:

a. Is Colleen behaving in a professional manner by omitting some of the financial statements?
b. What types of information would business owners be willing to provide bankers? Why types of information would business owners not be willing to provide?
c. What types of information would bankers want before extending a loan?
d. What common interests are shared by bankers and business owners?

Colleen's decision to provide incomplete document is unprofessional and collen has literally tried to conceal useful information required by the bank before making a decision. Hence, Colleen's act is unprofessional.

. What types of information would business owners be willing to provide bankers?

2.) Business owners will only be willing to disclose to banks information which showcase ands acknowledge that their business is prospering as this will fast track their loan application and worth.

3.) Banks wants information which will disclose the performance of the business making the loan application, information including business worth and periodic revenue or profit.

4.)

* Flexibility on repayment plan

* Balanced interest charge

* Less risk

* steady repayment when due