When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review

question 28

Multiple Choice

When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's." The focus on the intended purpose of the loan is known as:

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

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Definitions:

Pressure Buildup

The increase in pressure within a system, often leading to the need for release or intervention to prevent malfunction or damage.

Momentum Buildup

The process of gaining velocity or strength in a physical object or within a context, often used metaphorically to describe projects or campaigns.

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Predicted Salary

An estimate of the amount of money an individual is expected to earn in a specific role or job position.