Asked by Nichole Stone on Jun 30, 2024
Verified
In Scenario 9-2, a major concern of any provider of funding will be Ryan's ability to repay his loan. This refers to which of the five C's?
A) Capacity
B) Capital
C) Collateral
D) Conditions
Capacity
The highest amount of production a business can maintain during a specific timeframe under regular conditions.
- Acquire knowledge on the theory and value of the five C's of credit in corporate financing.
- Understand the implications of interest rates, loan terms, and the economic environment on financing decisions.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
A
Explanation :
Capacity refers to the borrower's ability to repay a loan, which is a primary concern for lenders when evaluating creditworthiness.
Learning Objectives
- Acquire knowledge on the theory and value of the five C's of credit in corporate financing.
- Understand the implications of interest rates, loan terms, and the economic environment on financing decisions.
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