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Recognising the Warning Signs

In: How to Handle Problem Loans

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  • T. H. Donaldson

Abstract

A clear sign of possible trouble is an adverse change in conditions either in the company’s own industry or of those to which it sells. For instance, a young industry (personal computers is a recent example) may grow fast and provide opportunities to almost any company with a good product, causing more companies to enter it than there is room for. Supply becomes so great that to survive companies need something extra, and those which have grown fast may still be unable to cope.

Suggested Citation

  • T. H. Donaldson, 1986. "Recognising the Warning Signs," Palgrave Macmillan Books, in: How to Handle Problem Loans, chapter 3, pages 22-35, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-07740-3_3
    DOI: 10.1007/978-1-349-07740-3_3
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