When Evaluating the Creditworthiness of a Customer,the Term Character Refers

question 31

Multiple Choice

When evaluating the creditworthiness of a customer,the term character refers to the:

• A)nature of the cash flows of the customer's business.
• B)customer's financial resources.
• C)types of assets the customer wants to pledge as collateral.
• D)customer's willingness to pay bills in a timely fashion.
• E)nature of the customer's line of work.

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Definitions:

MC = P

A condition in economic theory where Marginal Cost (MC) equals Price (P), indicating optimal production levels where no additional units should be produced.

Profit

The financial gain obtained when the total revenues generated exceed the total costs incurred by a business.

Marginal Cost

The growth in total expenses incurred from the production of one more unit.

Output

The total amount of goods or services produced by a firm or country.