Use the Following to Answer Questions

question 118

Multiple Choice

Use the following to answer questions:
Scenario 9-2. Ryan has just graduated from college with a business degree. He has a wonderful idea for a new business called Ryan's Road Machines. He would like to sell a variety of all terrain vehicles (ATVs) for the personal use of his selected clientele. Outstanding customer service will be his competitive advantage as he provides individual service to each of his customers. He has just one small problem, no capital. He knows that he must meet the five Cs of credit when looking at external funding in order to prove his creditworthiness.
-In Reference 9-2 above, Ryan has never borrowed money before; however, he currently has a loan outstanding for his school expenses. Which of the five Cs is judged primarily on the applicant's past repayment patterns?

• A) Character
• B) Capital
• C) Collateral
• D) Conditions

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Definitions:

Invested

Money put into something with the expectation of gain, typically through an interest-bearing or equity-based vehicle.

Student Tickets

Discounted tickets offered to individuals enrolled in educational institutions as a benefit or to encourage attendance at events.

Box Office

The place where tickets to events such as movies, plays, and concerts are sold, often used to refer to the commercial success of such events.

Markup

Overhead and profit-oriented increment on the cost price of goods.