Asked by Sydney Vanpelt on Jul 25, 2024
Verified
The basic factors to be evaluated in the credit evaluation process, the five Cs of credit, are:
A) Conditions, control, cessation, capital, and capacity.
B) Conditions, character, capital, control, and capacity.
C) Capital, collateral, control, character, and capacity.
D) Character, capacity, control, cessation, and collateral.
E) Character, capacity, capital, collateral, and conditions.
Credit Evaluation
The assessment of the creditworthiness of a loan applicant or borrower.
Conditions
Specific requirements, terms, or circumstances that define how something is to be done or what must happen.
Cessation
The act of stopping or discontinuing a process, operation, or activity.
- Familiarize oneself with the crucial importance and aspects of credit evaluation, featuring the five Cs of credit.
Verified Answer
HW
Hazel WilliamsJul 30, 2024
Final Answer :
E
Explanation :
The five Cs of credit are Character, Capacity, Capital, Collateral, and Conditions. These factors are used by lenders to evaluate the creditworthiness of potential borrowers.
Learning Objectives
- Familiarize oneself with the crucial importance and aspects of credit evaluation, featuring the five Cs of credit.