Which one of the following terms refers to the basic factors that are reviewed when evaluating the creditworthiness of a potential customer?
A)terms of sale
B)collection policy
C)credit score
D)five Cs of credit
E)cash concentration

Question

Quizplus · Accepted Answer

The five Cs of credit - character, capacity, capital, collateral, and conditions - refer to the basic factors that are evaluated when determining the creditworthiness of a potential customer. These factors assess the borrower's ability and willingness to repay their debts. Terms of sale, collection policies, credit scores, and cash concentration may also be considered in the evaluation, but they are not the primary factors.

Which One of the Following Terms Refers to the Basic