Anickm03
Answered

When Bank RI or any other bank assesses whether a business is creditworthy and capable of repaying a long- or short-term debt obligation, one of the first things they consider is the movement of money into and out of the firm, also known as

A. cash flow
B. collateral
C. risk-return ratio
D. sales revenue



Answer :

GinnyAnswer

Final answer:

Banks assess a business's creditworthiness based on factors like cash flow, collateral, credit checks, and cosigners.


Explanation:

Cash flow is one of the key factors banks consider when assessing a business's creditworthiness. It refers to the movement of money into and out of the firm, indicating its ability to repay debts. Banks also evaluate creditworthiness through factors like collateral, credit checks, and cosigners.


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