Input Price Risk and Output Price Risk Are Both a Form

question 16

True/False

Input price risk and output price risk are both a form of commodity price risk.

---

Definitions:

5 C's of Credit

The five key elements lenders evaluate to assess a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.

Capacity

The maximum level of output that a company can sustain to produce within a specified period under normal conditions.

Operating Cash Flows

The amount of cash generated by a company's normal business operations over a specific period.

Credit Analysis

The evaluation of an individual's or organization's ability to repay debt.