The 5 C's of Credit

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

1. Which credit process provides another source of paying back the loan in the event the business can't repay the loan?

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1. 2. The shareholders invest in stock for the company. This is known as:

2. 3. The bank may do some calculations such as debt to equity. This is known as:

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About This Quiz & Worksheet

The following quiz and worksheet combo will display your knowledge of the 5 C's of credit. Areas of emphasis will include shareholders and debt to equity.

Quiz & Worksheet Goals

During the assessments, you will be tested on:

  • Slow periods of business during the year
  • Credit process
  • Shareholders
  • The importance of a potential borrowers's background

Skills Practiced

  • Information recall - access the knowledge you've gained regarding credit
  • Knowledge application - use your knowledge to answer questions about credit processes
  • Interpreting information - verify that you can read information regarding the role of shareholders and interpret it correctly

Additional Learning

To learn more about credit, review the accompanying lesson, The 5 C's of Credit. This lesson covers the following objectives:

  • Details how to determine creditworthiness
  • Explores how to repay a loan
  • Defines financial statements
  • Covers what the 5 C's of credit are
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