1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
emmasim [6.3K]
3 years ago
6

The 5 C's of credit include: I. Collateral and Capacity II. Conditions, Capital and Consideration III. Collateral and Credit Sco

re IV. Character and Conditions V. Consistency and Capacity
Business
1 answer:
pshichka [43]3 years ago
7 0

The 5 C's of credit include

  • collateral and capacity
  • character and conditions

Option I and IV

<u>Explanation:</u>

The five C's, or characteristics, of credit are as follows,

  1. capacity
  2. character
  3. capital
  4. collateral
  5. conditions

These are the framework used by most of the traditional lenders to estimate the potential (creditworthiness) of small-business borrowers.

Capacity: The ability of the borrower to repay the loan. It is evaluated from the benchmarks, financial metrics, borrowing and repayment history, credit score.

Character: The general credibility, trustworthiness and personality of the borrower from the lender's perspective. It is estimated from the credit history, work experience, references, credentials, reputation or interaction with lenders.

Capital: This is the total sum invested in the business by the owner or the partnership management.

Collateral: The assets that are used to secure and guarantee the loan. It is calculated from the hard assets like real estate or equipment; working capital, namely accounts receivable and inventory.

Conditions: The status of the borrowers business (growing or faltering). It evaluates the industry and economic trends that would affect the business and repayment of the loan.

You might be interested in
If the price level increases by 0.2 percent for every $100 billion increase in the money supply, by how much might prices rise i
Gala2k [10]

Answer:

3%

Explanation:

Increase in money supply ($ billion) = Increase in reserves / Reserve ratio

Increase in money supply ($ billion) = 150 / 0.1

Increase in money supply ($ billion) = 1,500

Increase in price level = (Increase in money supply / 100) * 0.2

Increase in price level = (1,500/100) * 0.2

Increase in price level = 3%

8 0
3 years ago
Research studies indicate that:
dezoksy [38]

Answer:

A)

Explanation:

Research studies indicate that U.S. producers gain more from tariffs than U.S. consumers lose. This is mostly because many intermediaries must pay various different tariffs including the consumer which all go to the producers, and therefore allowing the producers to gain more from the tariffs that the U.S. consumers will spend paying them.

8 0
3 years ago
Quill Manufacturing Business makes two models of marking pens. The requirements for each lot of pens in the three manufacturing
Juliette [100K]

Answer:

Optimal production quantity for the Tiptop model pen is 7.5 lot  

Explanation:

Say, X and Y is the is the fliptop and tiptop quantity respectively, then

Profit = 1000*(X + Y)

Objective function: Maximize 1000*(X+Y) subject to;

Eq:1 3X+4Y=< 36

Eq:2 5X+4Y=< 40

Eq:3 5X+2Y=< 30  

Using Excel Solver, we get:  

Optimal production quantity for the Tiptop model pen is 7.5 lot  

7 0
3 years ago
Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following
Brilliant_brown [7]

Answer:

c. $8

Explanation:

Calculation to determine the selling price

First step is to calculate the Markup percent

Markup percent= (90,000 + 150,000) / (30,000 x 15)

Markup percent = .533

Now let calculate the selling price

Selling price=533 x $15 per unit

Selling price= $8

Therefore the Selling price will be $8

7 0
3 years ago
Miracle Green Corporation operates two garden supply stores: A and B. The following information relates to store A: Sales revenu
Volgvan

Answer:

A's segment profit margin is: $151,000

Explanation:

<u>Calculation of A's segment profit margin</u>

Sales revenue                                               $ 810,000

Less Variable operating expenses             ($319,000)

Controllable Contribution                             $491,000

Less Fixed expenses:

Traceable to A and controllable by A        ($230,000)

Traceable to A and controllable by others ($111,000)

Profit Margin                                                  $151,000

8 0
3 years ago
Other questions:
  • Jane recently was diagnosed with stage ii skin cancer. the treatment for her particular diagnosis should last no longer than a m
    10·1 answer
  • What is the difference between marginal values and average​ values? A. Marginal values show the total benefit or cost from consu
    9·1 answer
  • Risk is an important concept affecting security prices and rates of return. Risk is the chance that some unfavorable event will
    8·1 answer
  • In the project briefing, the outgoing project manager tells you that the scope statement for the project has been documented, WB
    7·1 answer
  • Seymour owns 3 acres of beautiful waterfront property on a large inland lake. In his will, Seymour donates the land to the state
    11·1 answer
  • Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and mate
    15·1 answer
  • Martha works as a senior manager in a bank. The bank has hired 20 new employees. Martha has spent a week defining the roles and
    9·2 answers
  • Theoretically, a company comparing multiple projects with similar investment requirements and durations would select projects wi
    7·1 answer
  • Describe the difference between real gdp and nominal gdp.​
    11·1 answer
  • All of the following are automatic stabilizers, except.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!