When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review

question 55

Multiple Choice

When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's". The money the entrepreneur has invested in the business, which is an indication how much is at risk if the business should fail is known as:

• A) capacity
• B) capital
• C) collateral
• D) conditions
• E) character

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Definitions:

Service Mark

A trademark used in the United States to identify and protect the services provided by a business, rather than the goods it produces.

Brand Name

The distinctive title by which a product or company is known, often protected as a trademark.

Recognizable Logo

A distinctive graphic design, symbol, or emblem used to identify a company, brand, product, or service.

Trade Secrets

Information that is not known to the public and is protected by a company to maintain competitive advantages, such as recipes or manufacturing techniques.