Here is the concept that I'm trying to improve upon. The concept is investing principles through finance, As a lender or a shareholder, I need to...

Here is the concept that I'm trying to improve upon. The concept is investing principles through finance, As a lender or a shareholder, I need to better address methods of identifying risk.

Mr. Franklin owns a company and uses his cash flow for personal gain in buying cars, houses, etc. I'm putting myself in the shoes of an investor and lender. What is the best approach to:

a. If Mr. Franklin asked to take a loan out from a lender. What measure do lenders typically take to get money back from their lendees?

b. Mr. Franklin wants to buy one-third of his company, and wants to use the money from selling this portion of the company to expand his business. As a shareholder, what steps might someone take to make sure he spends his profits and the investment money you gave him wisely?

Any help would be appreciated!