Capacity, Which Is One of the Traditional "Five Cs" of Credit

question 61

Multiple Choice

Capacity, which is one of the traditional "five Cs" of credit analysis, refers to the ____.

• A) general economic climate and its effect on the applicant's ability to pay
• B) willingness of the applicant to meet its financial obligations
• C) financial strength of the applicant (i.e., net worth)
• D) ability of an applicant to meet its financial obligations

Identify and describe the three classifications of services.

Recognize the special attention required by the product/service element in the service marketing mix.

Understand the three properties of products and services that influence consumer purchase decisions and provide relevant examples.

Understand the scope and application of warranties in consumer transactions.

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Definitions:

Technical Expertise

Specialized knowledge or skills in a particular area of technology or science.

Line Workers

Employees who are directly involved in the production process of a factory or in the operation of a service company.

Board of Directors

A group of individuals elected by shareholders to oversee and govern a corporation's management and major decisions.

Stockholders

Individuals or institutions that own shares of stock in a corporation, giving them ownership interests and rights to dividends.