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Loretta Smith, president and owner of Custom Enterprises, applied for a $250,000 loan from City National Bank. The bank requested financial statements from Custom Enterprises as a basis for granting the loan. Loretta has told her accountant to provide the bank with a balance sheet. Loretta has decided to omit the other financial statements because there was a net loss during the past year.

 
Discuss the following questions:
 
1. Is Loretta behaving in a professional manner by omitting some of the financial statements?
 
2. a. 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?
 
b. What types of information about a business would bankers want before extending a loan?
 
c. What common interests are shared by bankers and business owners?

Instructions: Your initial response should be no less than 250 words with at least one scholarly journal reference (dictionary-type websites are excluded). Reply to at least two of your classmates.  Replies to classmates should be a minimum of 100 words and include direct questions. In-text citations and references must be in APA format. Refer to the Forum Grading Rubric below for additional guidelines.

Initial Post Due: Sunday by 11:55 pm ET*** (Week 1 only)
Replies to Classmates Due: Sunday by 11:55 pm ET

Make sure you are using credible sources in your discussions and assignments. Scholarly journals are the preferred source of credible/quality references. These consist of peer-reviewed articles published in academic journals related to the field, which are found via our Library.  Websites such as Investopedia, ask.com, answers.com, or dictionary-type of websites limit the insight to the topics. Wikipedia is not acceptable as it is not a reliable, credible source of reference. The purpose is to bring in new information and how does it apply to our topic from a real-world perspective, instead of extending on definitions that are found in the book.
 
More information what a credible source consists of can be found here:  http://writingcommons.org/evidence/supporting-sources/630-what-might-be-a-more-credible-reliable-source.
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