You are appointed as a credit manager in the local branch of ZAA Bank that is...

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Finance

You are appointed as a credit manager in the local branch of ZAABank that is situated in an industrial area. Most customers arebusinesses. Provide a brief summary of important credit riskfactors relating to the following forms of business that you as abanker should keep in mind:

a. Sole proprietor
b. Partnership
c. Private company

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CREDIT RISK FACTORS A Sole Proprietor Single person Obligation The interest principal obligation undertaken by the sole proprietor falls entirely on a single person and hisher assets with no backing from any other party Moreover the success of the proprietor business is also prerogative of a single person Capacity to repay Since in case of sole proprietor the liability of the business is unlimited See Answer

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You are appointed as a credit manager in the local branch of ZAABank that is situated in an industrial area. Most customers arebusinesses. Provide a brief summary of important credit riskfactors relating to the following forms of business that you as abanker should keep in mind:a. Sole proprietor b. Partnership c. Private company