Question

Every manager has different skills, and specialties of expertise. It is quite possible that you could be in a situation where you see something that someone else does not see, especially if they are working under you with less education or experience than you. If a loan officer working under you recommends a loan to a customer, describe (A) when you would authorize that loan, and (B) when you would deny the loan in each of the following cases and give your rationale.

1. You disagree with your subordinate because you do not think restaurants are good investments in general, so you have a bad feeling about this customer's ability to repay the loan based on your experience with the market rather than any financial facts.
   
2. You disagree with your subordinate because you think medical operations are high risk for legal problems, so you have a bad feeling about this customer's ability to repay the loan based on your experience with the law rather than any financial facts.
   
3. You disagree with your subordinate because you think members of their family are business failures, so you have a bad feeling about this customer's ability to repay the loan based on your experience with social history rather than any financial facts.
   
4. You disagree with your subordinate because you just have a bad feeling about this customer's ability to repay the loan based on your gut instinct rather than any financial facts.

Answer 1

Answer:

You can't help contradicting your subordinate since you don't think cafés are wise interests by and large, so you have a bad feeling about this customer's ability to repay the loan based on your experience with the market rather than any financial facts. Advance right now be approved dependent on specific variables and the essential factor that the association needs to have is maintainability in the business and the time that the association has been there in the market on the grounds that the rate of failure in case of restaurants are high, hence the restaurant in this case has to be there in the market and has to be a profitable business so that they are able to pay back the loan. The organization needs to have certain security factors as well so that if they are unable to pay back the loan, we can use their security investments to retrieve the same. You can't help contradicting your subordinate since you think clinical activities are high hazard for legitimate issues, so you have an awful inclination about this present client's capacity to reimburse the credit dependent on your involvement in the law as opposed to any budgetary realities. There is no doubt in the fact that medical operation is very high-risk incidents and hence in order to approve a loan in this case because the law is quite complicated. Hence. I believe Loan can be approved but for that the individual needs to take up a legal agreement which will state that the person promise to pay the sum even at any cost even if the situation of the patient do not improve after the operation.

You disagree with your subordinate because you think members of their family are business failures, so you have a bad feeling about this customer's ability to repay the loan based on your experience with social history rather than any financial facts. I accept that family ancestry ought not be considered as a significant factor right now rather than that the field-tested strategy and thought of the business should be assessed dependent on which the credit can be approved to the individual so that the business can succeed in this case. While approving the loan we need to evaluate the options that the individual possesses in case of a failure which can be used to reimburse the loss that is incurred.