When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review

question 59

Multiple Choice

When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's". The general impression the entrepreneur makes on the potential lender or investor is known as:

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

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Definitions:

Algae

Photosynthetic, predominantly aquatic organisms, ranging from single-celled forms to giant kelps, that are not classified as plants, animals, or fungi.

Spore-Forming Capsules

Structures produced by certain bacteria and plants that encase and protect spores until they're released into favorable conditions for growth.

Classified

The process of organizing or categorizing entities into groups based on shared characteristics or criteria.

Pine Tree

A type of evergreen tree belonging to the genus Pinus, known for needle-like leaves and production of cones containing seeds.