One of the Five C's of Credit Is Capacity

question 99

Multiple Choice

One of the five C's of credit is capacity.Most likely,what information would potential creditors consider in evaluating your capacity?

• A)Your marital status
• B)Your age
• C)Your leverage ratios
• D)Your liquidity ratios
• E)Both C and D are correct answers.

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Definitions:

Multifinality

The concept in psychology that similar early experiences can lead to different outcomes in individuals.

Equifinality

A principle in systems theory stating that a given end state can be reached by many potential means and from different starting points, emphasizing the multiplicity of approaches to achieve the same outcome.

Psychopathology

The scientific study of mental disorders, including their symptoms, causes, and treatments.

Comorbidity

The coexistence of multiple illnesses or health conditions in a patient at the same time.