Which of the Following Are the Two Primary Concerns of Creditors

question 21

Multiple Choice

Which of the following are the two primary concerns of creditors?

• A)Security and the ability of the borrower to make payments
• B)Security and profitability
• C)Solvency and the ability of the borrower to make payments
• D)Solvency and profitability

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Definitions:

Oligopoly

An oligopoly is a market structure in which a few firms dominate the industry, leading to limited competition.

Average Total Cost

Total cost divided by the quantity of output

Marginal Cost

Additional costs associated with the production of one more unit of a product or service.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.