1. Which one of the following items is a key risk for a line of credit that finances ongoing needs related to current assets?
On-time and within budget completion of property improvements
Sale of inventory and collection policies related to receivables
Time it takes to complete multiple operating cycles
Time it takes to complete a project and doing so within budget
2. To which C of the five C’s of credit does commercial loan support relate most closely?
Character
Capacity
Collateral
Conditions