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Question

Credit granting institutions take decisions based on the________ performance of the undertakings.

A
managarial
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B
financial
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C
social
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D
economical
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Solution

The correct option is C financial
Credit gaining institutions take decisions based on the financial performance of the undertakings. They refer the financial statements to analyse the performance of the business. Credit gaining institutions need to check whether the company is capable of repaying the credit they are taking or not.

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