Which One of the Following Five Cs of Credit Is

question 12

Multiple Choice

Which one of the following five Cs of credit is NOT correctly defined?

• A)Capacity-Whether the borrower has enough other credit available to pay off the loan in the event of cash flow problems.
• B)Capital-The borrower's equity.
• C)Character-A measure of the borrower's intention/willingness to repay the loan.
• D)Conditions-Assessing how economic conditions could affect the borrower's ability to repay the loan.
• E)Collateral-An asset of the borrower that the lender may seize in the event of default on the loan.

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Definitions:

Market Segments

Divisions within a broader market consisting of customers with similar characteristics, needs, or behaviors.

Marketing Communication

The process and methods used by organizations to convey promotional messages about their products or services to their target audience.

Commercial

A promotional advertisement, typically broadcast on television or radio, intended to inform or persuade an audience about a product or service.

Value Proposition

The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.