Lenders protect themselves from conflicts of interest with shareholders through:

Question

Lenders protect themselves from conflicts of interest with shareholders through:

a.

cooperative agreements signed by shareholders and lenders

b.

limiting the amount of funds bondholders lend

c.

loan agreements that prohibit borrowing companies from undertaking excessive risk

d.

offering lenders a share of profits

a.

cooperative agreements signed by shareholders and lenders

b.

limiting the amount of funds bondholders lend

c.

loan agreements that prohibit borrowing companies from undertaking excessive risk

d.

offering lenders a share of profits

Explanation / Answer

loan agreements that prohibit borrowing companies from undertaking excessive risk

loan agreements that prohibit borrowing companies from undertaking excessive risk

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