A ﬁrm will likely be rejected for credit due to concerns about its _____________ if its ﬁnancial reserves are considered to be lacking.

Question

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Concerns about a firm's capital usually refer to the amount of money that the firm has to finance its operations and invest back into the business. If a firm's financial reserves are lacking, it could suggest that it does not have enough capital to support its operations and repay debts, which could lead to a higher risk of default on loans or other credit obligations. This makes it more likely for the firm to be rejected for credit.

A ﬁRm Will Likely Be Rejected for Credit Due to Concerns