Scenario 9-2

question 16

Multiple Choice

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 C's of credit when looking at external funding in order to prove his creditworthiness.
-In Scenario 9-2, Ryan's inventory will provide a large part of this
C .The machines themselves can be pledged as security in order to meet the C of ______.

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

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Definitions:

Insulin Deficiency

A medical condition where the body produces insufficient amounts of insulin, affecting blood sugar regulation.

Diabetes Mellitus

A disorder caused by insulin deficiency.

Pancreatitis

An inflammation of the pancreas, often caused by gallstones or excessive alcohol consumption, leading to abdominal pain.

Appendicitis

Inflammation of the appendix, a small pouch attached to the large intestine, which can become a medical emergency if not treated.