The Two Major Determinants of the Credit Decision Are the Character

question 42

True/False

The two major determinants of the credit decision are the character of the creditor firm and the capacity of the debtor company to repay the loan.

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Definitions:

Contract

A formal agreement that binds two or more parties together under legal accountability.

Farm Machinery

Equipment and machinery specifically designed and used for agricultural operations.

Consumer Goods

Products that are purchased for personal use or consumption by the general public, such as clothing, food, and electronics.

Farm Products

Commodities produced through agricultural activities, such as crops, livestock, and their by-products.