Asked by
Michelle Samora
on Nov 07, 2024Verified
Of a firm's five Cs of credit, which is LEAST likely to be managed directly by the firm?
A) Capacity.
B) Character.
C) Capital.
D) Collateral.
E) economic conditions
Economic Conditions
The state of a country's economy, influenced by factors such as GDP, unemployment rates, and inflation.
Five Cs of Credit
A set of criteria used by lenders to gauge a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.
Capacity
The highest level of production a company can maintain to produce a good or deliver a service.
- Identify the traits of financially reliable customers by understanding the five Cs of credit.
Verified Answer
EA
Learning Objectives
- Identify the traits of financially reliable customers by understanding the five Cs of credit.