One of the Five C's of Credit Is Capacity

question 77

Multiple Choice

One of the five C's of credit is capacity. Most likely, what information would potential creditors consider in evaluating your capacity?

• A) your marital status
• B) your age
• C) your leverage ratios
• D) your liquidity ratios
• E) Both C and D are correct answers.

Understand the concept of total surplus and its components: consumer surplus and producer surplus.

Recognize the role of property rights in market efficiency.

Understand how market equilibrium affects efficiency and total surplus.

Recognize the concept of market failure and externalities.

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Definitions:

Psychographic Segmentation

A marketing strategy that divides a market based on consumer personality traits, lifestyles, interests, attitudes, and values.

Geographic Segmentation

The division of a market into different geographical units such as countries, states, regions, cities, or neighborhoods, to tailor marketing efforts to local preferences and conditions.

Lifestyle

The interests, opinions, behaviours, and behavioural orientations of an individual, group, or culture.

Geodemographics

Geodemographics is a method of market segmentation that combines geography with demographic information to classify populations for targeted marketing and research purposes.