Home
/
Business
/
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

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

expert verifiedVerification of experts

Answer

4.1385 Voting
avatar
HaydenProfessional · Tutor for 6 years

Answer

Cost<br /><br />There 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.

Explain

## Step 1: <br />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.<br /><br />## Step 2: <br />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. <br /><br />## Step 3: <br />It is clear that Cost is not one of the standard 5 C's of credit upon simple comparison.
Click to rate:

Hot Questions

More x