In the Five Cs of Credit, Capacity Refers to the Borrower's

question 98

True/False

In the five Cs of credit, capacity refers to the borrower's trustworthiness and stability.

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Definitions:

Operational Excellence

A philosophy in the workplace where problem-solving, teamwork, and leadership results in ongoing improvement in an organization.

Accounting Appearances

Refers to the presentation of a company's financial information in a manner that may look acceptable on the surface but may not accurately represent the underlying financial reality.

Loan Agreements

Contracts between a borrower and a lender outlining the terms of a loan.

Covenants

Agreements or clauses within a financial contract that obligate the borrower to meet specified conditions or restrict certain actions to protect the lender's interests.