Traditional Discussion of Guidelines for Examining Credit Worthiness Include "The

question 25

Multiple Choice

Traditional discussion of guidelines for examining credit worthiness include "the five Cs of credit." Each of the following is one of the "five Cs" except

• A)capacity
• B)cooperation
• C)character
• D)conditions

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Definitions:

Apparent Authority

The power that a third party perceives an agent to have, based on the principal's representations, leading the third party to reasonably believe that the agent is authorized.

Undisclosed Principal

A person whose existence is unknown to the third party in a contract made by an agent on their behalf.

Apparent Authority

The power that a third party perceives an agent has over the principal, based on the principal's behavior.

Actual Authority

Actual authority refers to the express and implied powers that an agent has been intentionally granted by the principal in an agency relationship.