A Firm Will Likely Be Rejected for Credit Due to Concerns

question 41

Multiple Choice

A firm will likely be rejected for credit due to concerns about its _____________ if its financial reserves are considered to be lacking.

• A) Capacity.
• B) Character.
• C) Capital.
• D) Collateral.
• E) economic condition

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Definitions:

Accounting

The systematic recording, reporting, and analysis of financial transactions of a business.

Aromatic Molecules

Organic compounds characterized by the presence of one or more benzene rings.

AntiAromatic

Compounds that are cyclic, conjugated, but do not follow Huckel's rule, resulting in instability and lack of aromatic character.

NonAromatic

A compound that does not contain a cyclic, planar ring with a delocalized π-electron system typical of aromatic compounds.