Phil is approaching a banker for some additional financing. Which of the following assets would be most important to the banker?
A) Goodwill
B) Inventory
C) Current patents
D) Business reputation

Question

Quizplus · Accepted Answer

Inventory is the most liquid and easily sellable asset in case of default, so it is the most important asset for a banker when considering additional financing. Goodwill, current patents, and business reputation may be important factors as well, but they are harder to quantify and harder to convert into cash in case of default.

Phil Is Approaching a Banker for Some Additional Financing