MGT 521 Week 5 DQ 2

While the economy will always have an affect on any business, the financial industry is quite interesting. There are factors that have direct impact on local, state, and national levels which would prompt a need for a loan or a line of credit. Some factors include natural disasters, holidays, special events, employment status, emergencies, and health. The state of the economy spurs interest in lending laws and legislation on all levels. Since lending laws vary depending on the type of lending it is, the concerns are handled differently. Some states require particular licenses and particulars for different lending. Regardless of whether it is on a local, state, or national level, the economy has a chain reaction across all three eventually and the need for funding is always present. It's the ability to pay it back that begins to affect the business in the form of loss. Additionally, the need for fraud detection is increased during harsher economic times
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