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Would you be more willing to lend to a friend if she put all of her...

Would you be more willing to lend to a friend if she put all of her life savings into her business than you would if she had not done so? Why? Discuss.

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Answer #1

I would be unwilling to lend to my friend if she had put all of her life saving in her business because it is an extremely aggressive strategy and if the business does not turn out successful, then my investment are also going to go bust, so from investment and business perspective, I would not be lending as the insolvency risk is very high and there are no collaterals available as well.

I would be willingly landing to my friend if she had not put the all money into business, because it will provide me a hedge with my investment and if business does not turn out successful, I could get back my money as well.

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