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:

Earnings

The financial gains obtained from labor, investment, or business operations, typically measured over specific periods.

Applicants

Individuals who apply or express interest in a job, program, or opportunity, seeking to become candidates for selection.

HRISs

Human Resource Information Systems, digital solutions for managing an organization's people-related data and processes.

Technological Effect

The impact of technology on society, including changes in behaviour, efficiency, and economic structures.