With regards to credit analysis, this indicates the adequacy of owners' equity relative to existing liabilities as the underlying support for creditworthiness.
A) Conditions
B) Capacity
C) Capital
D) Collateral

Question

Quizplus · Accepted Answer

This refers to the financial condition of a borrower, specifically the amount of capital they have in relation to their liabilities. Capital adequacy is a key factor in determining creditworthiness.

With Regards to Credit Analysis, This Indicates the Adequacy of Owners