In countries where finance is mainly provided by banks we would expect:

Question

Quizplus · Accepted Answer

If finance is mainly provided by banks, then there is a greater reliance on the balance sheet to assess the creditworthiness of potential borrowers. As a result, there is likely to be a greater emphasis on maintaining strong financial ratios and other balance sheet indicators in order to secure financing. This is why choice B, which references the balance sheet, is the correct answer. Choices A and C are not necessarily true in this context, as bankruptcy laws and public disclosure requirements can vary widely depending on the country and its regulatory environment.

In Countries Where Finance Is Mainly Provided by Banks We