When Determining the Capacity of a Borrower to Service Debt

question 8

Multiple Choice

When determining the capacity of a borrower to service debt, a credit analyst should be- gin with an examination of:

• A) industry structure.
• B) industry fundamentals.
• C) company fundamentals.

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Definitions:

Creative Intelligence

The ability to produce new products, ideas, or inventing novel solutions to problems.

Practical Intelligence

A facet of intelligence that concerns the ability to solve everyday problems through skilled reasoning and experience.

Analytical Intelligence

The ability to analyze, evaluate, critique, and logically reason through problems and situations.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a commonly used test for assessing adult and adolescent intelligence.