Of a fiRm's fiVe Cs of Credit, Which Is LEAST

question 107

Multiple Choice

Of a firm's five Cs of credit, which is LEAST likely to be managed directly by the firm?

• A) Capacity.
• B) Character.
• C) Capital.
• D) Collateral.
• E) economic conditions

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Definitions:

Rival Firms

Companies that compete directly with one another in the same industry or market.

Downward-sloping Demand

A market phenomenon where demand for a product decreases as the price increases, indicating consumers buy less of the product at higher prices.

Competitive Price-searcher

A firm operating in a market where it must search for the optimal price that balances its desire for profits with the need to remain competitive.