Multiple Choice
Capacity, which is one of the traditional "five Cs" of credit analysis, refers to the ____.
A) general economic climate and its effect on the applicant's ability to pay
B) willingness of the applicant to meet its financial obligations
C) financial strength of the applicant (i.e., net worth)
D) ability of an applicant to meet its financial obligations
Correct Answer:

Verified
Correct Answer:
Verified
Q56: Relaxing (i.e., lowering) the firm's credit standards
Q57: To minimize the possibility of running out
Q58: _ refers to the applicant's financial strength,
Q59: All except which of the following are
Q60: All except which of the following are
Q62: _ are the criteria the firm uses
Q63: The average collection period measures the number
Q64: Potential losses can occur in the credit
Q65: All except which of the following are
Q66: In general, the _ a firm's production