Which of the following statements describes a Condition strength or weakness for a company in the 5 Cs of credit framework?

The risks associated with the industry are high.

The management team has a great reputation among customers and suppliers.

The company has redundant assets that are not currently used in business.

The operating cash flow of the company is low.

Which of the following scenarios would NOT be considered a strength when assessing the management team as part of evaluating a companys character?

Financial reports are not widely shared and performance measures have not been identified.

Management has clear communication of expectations to the team.

Management has identified clear risk mitigation strategies.

Management has experience in the industry and financial acumen.

Select the loan contract with the lowest risk.

An unsecured demand loan with monthly payments

An unsecured term loan with a bullet principal payment at maturity

A demand loan with monthly payments secured by assets

A term loan with a bullet principal payment at loan maturity secured by assets