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:

Correlation Coefficient

A mathematical indicator showing how much two variables move in relation to each other.

Relationship

A relationship refers to a connection, association, or involvement between people, whether based on kinship, love, friendship, or other form of social commitment.

Variables

Elements or factors that can be changed and measured in an experiment to determine their effects on the outcome.

Aggression

Behavior intended to harm or intimidate others, driven by various psychological, environmental, or biological factors.