Author Question: In the figure below, list the eight steps in the decision-making process in the correct order ... (Read 64 times)

aabwk4 · **on:** Jul 21, 2018

In the figure below, list the eight steps in the decision-making process in the correct order

What will be an ideal response?

Question 2

What are four ways a borrower can minimize risk?

What will be an ideal response?

livaneabi · **Reply #1 on:** Jul 21, 2018

Answer to Question 1

The eight steps are, in order: (1) Establish goals, (2) gather facts, (3) analyze resources, (4) establish
routes, (5) make an informed decision, (6) put plan into action, (7) assume responsibility, and (
evaluate results.

Answer to Question 2

The borrower can minimize risk by applying certain rules, including the following:
Use production loans to increase income.
Limit amount borrowed on new or unfamiliar enterprises.
Keep debt as low as possible while maintaining efficiency.
Keep abreast of markets and trends.
Maintain a debt-to-net worth ratio of 1:1 or less.
Maintain proper debtincome relationship.
Select lender on dependability and terms.
Have a definite repayment schedule.
Reduce risk by carrying adequate insurance.