Collateral (What You Own)is One of the 5 Cs of Credit

question 172

True/False

Collateral (what you own)is one of the 5 Cs of credit.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders, and is capable of owning property, being liable, and suing or being sued.

General Partnership

A business arrangement where two or more individuals share ownership and the responsibility for managing the business and its debts.

Sole Proprietorship

A business structure where the business is owned and run by one individual, where there is no legal distinction between the owner and the business entity.

Partnership

A business formed by two or more co-owners.