Of the Five C's of Credit, What Is Considered When

question 6

Multiple Choice

Of the five C's of credit, what is considered when attempting to determine a business's capacity to borrow?

• A) The general state of the economy and the industry in which the customer operates
• B) The demonstrated integrity of the business' owner or its board of directors
• C) The likelihood of the business's future profitability and liquidity
• D) The willingness of the business to pay amounts owning as evidenced by the payment record
• E) The amount of credit requested relative to the customer's total financial resources

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Definitions:

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and high commercial value.

Market Price

The present cost at which a service or asset is available for purchase or sale on the market.

Environmental Quality

The condition or state of the environment based on various factors such as air and water purity, and the presence of pollutants or contaminants.