When faced with uncertainty, firms may want to keep liabilities off their balance sheets.Such firms may attempt to engage in off-balance-sheet financing.
Required:
a. Why might firms want to keep liabilities off their balance sheets?
b. How might firms attempt to keep liabilities off their balance sheets?

Question

When faced with uncertainty, firms may want to keep liabilities off their balance sheets.Such firms may attempt to engage in off-balance-sheet financing.
Required:
 a.	Why might firms want to keep liabilities off their balance sheets?
b.	How might firms attempt to keep liabilities off their balance sheets?

Quizplus · Accepted Answer

The Answer of When faced with uncertainty, firms may want to keep liabilities off their balance sheets.Such firms may attempt to engage in off-balance-sheet financing.
Required:
 a.	Why might firms want to keep liabilities off their balance sheets?
b.	How might firms attempt to keep liabilities off their balance sheets?

When Faced with Uncertainty, Firms May Want to Keep Liabilities