When reviewing loan applications, Jessica, a loan officer at A+ credit union, always examines the amount of cash and marketable securities that applicants have on hand. She reviews historical, current, and projected cash flows of a business to gauge whether applicants are able to repay the loan. These activities best describe which of the five "C's" of credit?
A) Capacity
B) Capital
C) Collateral
D) Character
Correct Answer:
Verified
Q1: If a small business owner needs to
Q3: Determining the applicant's ability to repay a
Q4: The fundamental financial building blocks for a
Q5: The ability to finance an investment through
Q6: An amount of money borrowed from a
Q7: Providers of equity funds forego the opportunity
Q8: Debt creates the risk of becoming _
Q9: Equity funds never need to _.
A) be
Q10: The final step in defining required assets
Q11: Building, equipment, land, and patents are which
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