Creditors Are Interested in Assessing a Borrower's Capacity and Character

Multiple Choice

Creditors are interested in assessing a borrower's capacity and character, as well as overall economic conditions when reviewing a loan application.Which of the following would make a bank more willing to lend funds?

A) A small business faces deteriorating business conditions because of a recession in the overall economy.
B) The owner of a small business has been personally bankrupt twice.
C) A retail store has been diligent in making all of its payments on time and in full over the past five years.
D) A large corporation missed an interest payment on one of its bond issues last month.