When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's." The guarantees, or additional forms of security (such as assets), the entrepreneur can provide the lender are known as:
A)character
B)capital
C)collateral
D)conditions

Question

Quizplus · Accepted Answer

The guarantees or additional forms of security provided by the entrepreneur are known as collateral. The other four C's include character, capital, capacity, and conditions, which are all factors that lenders consider when assessing creditworthiness. However, collateral specifically refers to the assets that can be used to secure a loan in case the borrower is unable to repay it.

When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review