In the 5 Cs of Credit,character Refers to the Borrower's

question 68

True/False

In the 5 Cs of credit,character refers to the borrower's attitude toward his or her credit obligations.

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Definitions:

Capital Structure

The composition of a company's funding, including debt, equity, and other financial instruments, which defines how a company finances its overall operations and growth.

Debt

Money that is owed or due to be paid, typically resulting from borrowing funds to be repaid with interest.

Financial Leverage

Financial leverage is the use of borrowed money (debt) to amplify the potential returns from an investment or project.

Leverage

The use of borrowed funds to increase the potential return of an investment.