Chapter 11

Question 1

5 c’s of credit

Answer 1

Character, collateral, capacity, capital, conditions

Question 2

internal sources of funds

Answer 2

sales of assets, profits, accounts receivables

Question 3

external sources of funds

Answer 3

friends, family, banks

Question 4

types of bank loans

Answer 4

Asset based and cash flow financing

Question 5

asset based bank loans

Answer 5

accounts receivables, inventory loans, real estates loans

Question 6

cash flow financing

Answer 6

installment loans, commercial loans, long term loans, character loans