select the correct answer. which term describes the ability to repay debt? a. capacity b. creditworthiness…

select the correct answer. which term describes the ability to repay debt? a. capacity b. creditworthiness c. capability

select the correct answer. which term describes the ability to repay debt? a. capacity b. creditworthiness c. capability

Answer

Brief Explanations:

In finance (a sub - field of Business), capacity refers to a borrower's ability to repay debt, considering income and existing debt obligations. Creditworthiness is a broader assessment of a borrower's likelihood to repay debt, including factors like credit history. Capability is a more general term not specifically used to describe debt - repayment ability in finance.

Answer:

A. capacity