The Basic Factors to Be Evaluated in the Credit Evaluation

question 221

Multiple Choice

The basic factors to be evaluated in the credit evaluation process, the five Cs of credit, are:

• A) Conditions, control, cessation, capital, and capacity.
• B) Conditions, character, capital, control, and capacity.
• C) Capital, collateral, control, character, and capacity.
• D) Character, capacity, control, cessation, and collateral.
• E) Character, capacity, capital, collateral, and conditions.

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Definitions:

Return

Return refers to the profit or loss derived from an investment over a specified period, typically expressed as a percentage of the investment's initial cost.

Expected Payoff

The predicted value of a decision, investment, or gamble, factoring in all possible outcomes and their probabilities.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Charity Raffle

A fundraising event where tickets are sold for the opportunity to win prizes, with the proceeds going to support a charitable cause.