When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review

question 55

Multiple Choice

When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's". The money the entrepreneur has invested in the business, which is an indication how much is at risk if the business should fail is known as:

• A) capacity
• B) capital
• C) collateral
• D) conditions
• E) character

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Definitions:

Contractility

The ability of muscle tissue to contract forcefully when stimulated.

Stimulation

The action of encouraging something to move, grow, or develop further.

Dyspnea

Difficulty or labored breathing, often described as a feeling of being short of breath.

Orthopneic

Pertaining to a position assumed by patients to ease breathing, often sitting up straight or leaning forward.