The manager of Northern Rivers Community and Business Development need determine whether he should grant a $100,000 loan to the owners of Three Star Food Service Ltd.
Crystal's past fiscal performance, the business conditions, the nature of the new owners, capacity to refund, as well as security problems must be considered.
Learning Objective: This case covers all factors of introductory finance. Students are asked to project financial statements given high and low sales amounts, to evaluate the advantages and disadvantages of a buyout, to understand the dangers related to extending credit, and assess the demand for personal guarantees.
Publication Date: 06/24/1997
This is just an excerpt. This case is about Finance
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