Kansas Bank has a policy of limiting their loans to any single customer so that the maximum loss as a percent of capital will not exceed 20 percent for both secured and unsecured loans. The limit has been adopted under the assumption that if the unsecured loan is defaulted, there will be no recovery of interest or principal payments. For loans that are secured (collateralized), it is expected that 40 percent of interest and principal will be collected. What is the concentration limit (as a % of capital) for secured loans made by this bank?

Environment as used in the textbook is the forces surrounding and influencing the life and development of the firm and is classified as:

A. controllable or uncontrollable. B. domestic or foreign. C. internal or external. D. all of the above. E. A and C.

An apartment building was built in 1960. An apartment is being rented to a couple ith no children. Which of the following is true?

A. The rules on lead-based paint don't apply unless the tenant have children B. The rules on lead-based paint don't apply to tenants, only purchasers C. The tenants must receive a ten-day window in order to test for lead-based paint D. The tenant should sign the lead-based paint disclosure and receive a pamphlet on lead-based paint