Mega Bucks Bank provided HeadCase, Inc., with a long-term loan to expand operations and make its new headband for men. Although interest rates on most long-term loans of the same time period (10 years) were costing businesses 10%, Mega Bucks Bank attached a 12% interest rate on the loan to HeadCase, Inc. Which of the following is a logical reason for this deviation?
The managers of Seattle Clothing Company regularly compare their actual profits with the firm's projected profits. When deviations occur, the managers take corrective action where necessary. The management of Seattle Clothing is exercising _______.
Investors evaluate HeadCase as a higher risk than other corporations.