When assessing the creditworthiness of new entrepreneurs, lending institutions review the "Five C's." The general impression the entrepreneur makes on the potential lender or investor is known as:
A)capacity
B)character
C)collateral
D)conditions

Question

Quizplus · Accepted Answer

The general impression the entrepreneur makes on the potential lender or investor is known as "character," which is one of the "Five C's" that lending institutions review when assessing creditworthiness. The other four "C's" are capacity (the ability to repay the loan), collateral (assets that can be pledged as security), conditions (economic and market conditions that may affect the borrower's ability to repay), and capital (the borrower's financial position).

When Assessing the Creditworthiness of New Entrepreneurs, Lending Institutions Review