Problem: As a practitioner-researcher, you will apply knowledge to real-life situations. In the following scenario, assume you are a loan officer for a bank and the owner of a small business approaches you regarding a loan. Consider the following questions as you formulate your decision:
- What financial ratios would you examine and why?
- Is there other information, in addition to the ratios, you would want to obtain from the business owner before making your decision on the loan?
- How would your answer change if it were a larger company seeking the loan?