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100 when faced with uncertainty firms may want to keep liabilities off their balance 4297822

 

100. When faced with uncertainty, firms may want to keep liabilities off their balance sheets. Such firms may attempt to engage in off-balance-sheet financing.

Required:
 

a.

Why might firms want to keep liabilities off their balance sheets?

b.

How might firms attempt to keep liabilities off their balance sheets?

 

 

 

101. Do firms confront ethical issues when engaging in off-balance-sheet financing? 

 

 

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