Generally, Banks Make Loans on the Basis of What Are

Multiple Choice

Generally, banks make loans on the basis of what are termed the five Cs: character, capacity, capital, collateral, and condition. In the case of entrepreneurs, _____ and _____ become the leading consideration, because the new business's performance estimates are based purely on forecasts.

A) capital; collateral
B) character; collateral
C) capacity; condition
D) capital; character
E) character; capacity