Which one of the five Cs of credit refers to a firm's financial reserves?

Question

Quizplus · Accepted Answer

The term "capital" refers to a company's or individual's financial reserves, which are considered as a factor in assessing creditworthiness. Therefore, E) capital is the correct answer. A) character refers to an individual's or firm's credit history or reputation. B) capacity refers to an individual's or firm's ability to repay debts based on income and expenses. C) collateral refers to an asset pledged as security for a loan. D) conditions refer to the overall situation or environment in which the loan will be paid back.

Which One of the Five Cs of Credit Refers to a Firm's