Which One of the Following 5 Cs Refers to the General

question 25

Multiple Choice

Which one of the following 5 Cs refers to the general economic climate in a customer's line of business?

• A)Capital
• B)Conditions
• C)Capacity
• D)Character
• E)Collateral

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Definitions:

Option to Abandon

A business decision making tool that allows a company to cease an investment or project if it turns out to be financially nonviable, minimizing losses.

Direct Labor Costs

The total cost of all the labor that is directly involved in the production of goods or the performance of services.

Variable Cost

Expenses that undergo alteration in response to the volume of production executed.

Office Rent

The cost associated with leasing a space for business operations or administrative work.