When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's". The money the entrepreneur has invested in the business, which is an indication how much is at risk if the business should fail is known as:
A) capacity
B) capital
C) collateral
D) conditions
E) character

Question

Quizplus · Accepted Answer

Capital refers to the money that the entrepreneur has invested in the business, indicating their financial commitment and risk in the venture.

When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review