Why is it necessary for a business firm to put up collateral when it takes out a loan?
So that the bank can keep a portion as advance payment on the loan
To show the bank that the business is big enough to require the loan
To assure the bank that loan payments will be made as promised
So the financial managers know dates of payment
So that the accounting people can generate accurate financial statements

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The Answer of Why is it necessary for a business firm to put up collateral when it takes out a loan?
So that the bank can keep a portion as advance payment on the loan
To show the bank that the business is big enough to require the loan
To assure the bank that loan payments will be made as promised
So the financial managers know dates of payment
So that the accounting people can generate accurate financial statements

Why Is It Necessary for a Business Firm to Put