Assets as Loan Security

Steps:

• Identify non-current assets as long-term items like property or equipment used as collateral.
• Recognize that security refers to backing for loans, where lenders assess asset value to minimize risk.
• Evaluate stakeholders: lenders need this info to approve credit, while others focus on operations or regulations.
• Match to options: only the bank manager directly uses asset values for lending decisions.

Why A is correct:

• Bank managers evaluate non-current assets as collateral under lending principles to secure loans against default risk.

Why the others are wrong:

• B: Credit customers seek payment assurance via liquidity; trade unions focus on wages and conditions, not loan security.
• C: Employees prioritize job stability and benefits, ignoring asset collateral values.
• D: Government departments assess taxes or compliance, not assets as loan security.

Final answer: A