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Chapter 8: Q.9 (page 235)

Would you be more willing to lend to a friend if she had put all of her life savings into her business than you would be if she had not done so? Why?

Short Answer

Expert verified
Shewilloperateinthelender'sbestinterestsandsafeguardthemoney'safety.
All essential information necessary for decision-making must be used to make investment decisions.
It contains all of the quantitative and qualitative data.

Step by step solution

01

Introduction

The utilization of funds in order to achieve a return above the amount invested is referred to as investment.
Assets, securities, and debt can all be invested in.
02

Explanation

Yes,themoneymustbeloanedtoafriendwhohadinvestedherentirelifesavingsinherfirm,becausespendingone'sentirelifesavingsinabusinessentailstakingasignificantriskinordertomakealargereturn.
Asaresult,shewilloperateinthelender'sbestinterestsandprotectthemoney'safety.
All essential information necessary for decision-making must be used to make investment decisions.
It contains all of the quantitative and qualitative data.

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