Monica Orgeta, president and owner of Star Enterprises, applied for a $250,000 loan from Carmel National Bank. The bank requested financial statements from Star Enterprises as a basis for granting the loan. Monica has told her accountant to provide the bank with a balance sheet. Monica has decided to omit the other financial statements because there was a net loss during the past year.
-Is Monica behaving in a professional manner by omitting some of the financial statements?
-What types of information about their businesses would owners be willing to provide bankers?
-What types of information would owners not be willing to provide?
-What common interests are shared by bankers and business owners?
-As the loan officer for Carmel National Bank, would you accept only the balance sheet in considering lending funds to Star or any business