When Assessing the Creditworthiness of New Entrepreneurs,lending Institutions Review the "Five

question 51

Multiple Choice

When assessing the creditworthiness of new entrepreneurs,lending institutions review the "Five C's".The guarantees,or additional forms of security (such as assets) ,the entrepreneur can provide the lender is known as:

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

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Definitions:

Elastic Demand Curves

Demand curves that show a significant change in quantity demanded when there is a change in the price of the good or service.

Differentiated Products

Goods or services that are distinguished from similar products in the market by unique characteristics, such as quality, brand, or performance.

Maximizing Profits

Refers to the process of increasing the difference between total revenues and total costs to achieve the highest possible earnings.

Minimizing Losses

A strategy or approaches taken to reduce the amount of loss incurred in a business operation or investment.