Before approving credit sales to a customer, the company must take into account the customer's five C's of credit, which include all of the following except: Collateral Character Capacity Conditions Cost Capital

Question

Before approving credit sales to a customer, the company must take into account the customer's five C's of credit, which include all of the following except: Collateral Character Capacity Conditions Cost Capital

Answer 1

CostThere appears to be a word, "Capitat" in the problem set likely a misspelled version of "Capital". The correct Five C's of Credit are Character, Capacity, Capital, Collateral, and Conditions with Cost not on the list, making it the correct answer as it does not belong to the Five C's of Credit.

Answer 2

## Step 1: Understand the assessment of creditworthiness used by lenders known as the Five C's of Credit. The 5 C's of Credit consist of Character, Capacity, Capital, Collateral, and Conditions. They encompass the system used by lenders to judge the credit risk of potential borrowers.## Step 2: Identify the listed factors and measure them against the standard Five C's of Credit. The factors listed are: Collateral, Character, Capacity, Conditions, Cost and Capital. ## Step 3: It is clear that Cost is not one of the standard 5 C's of credit upon simple comparison.

Question

Before approving credit sales to a customer, the company must take into account the customer's five C's of credit, which include all of the following except: Collateral Character Capacity Conditions Cost Capital

Answer

Answer

Explanation