MGMT 12 PRINCIPLES OF MANAGEMENT
12TH EDITION CHUCK WILLIAMS TEST
BANK CERTIFICATION REVIEW SET 2026
ANSWERS GUARANTEED PASS
⫸ CAMELS. Answer: Capital adequacy, Asset quality, Management
Quality, Earnings, Liquidity, Sensitivity to market risk
⫸ 5 C's of credit. Answer: Character, Cash Flow, Collateral, Condition,
Capacity
⫸ DSCR. Answer: (Debt Service Credit Ratio) - Can I cover all the
payments that I need to. "Do you earn enough to pay your loans?"
⫸ Negative Covenant. Answer: You can't buy more things without
talking to your banker
⫸ SPAC. Answer: (Special Purpose Acquisition Company) It raises
money through an IPO then it merges with a company
⫸ What types of loans do banks make. Answer: Consumer, Mortgage,
Car, Student, Business, Construction, Agriculture, Equipment,
Specialized Loans, Government Loans
, ⫸ Who sets the legal lending limit and what does that mean?. Answer:
Banks. It is a regulation that controls how much a bank is allowed to
lend to a borrower.
⫸ What's the process in lending?. Answer: It involves meeting the
borrower, collecting information, analyzing credit and collateral, getting
approval, closing the loan, and then monitoring it afterward.
⫸ How do you start it as a lender?. Answer: It starts with prospecting
and not application.
⫸ List different types of collateral your customer can provide. Answer:
Homes, Land, Cars, Trucks, Business Assets, CD's, Stocks, Bonds,
Crops, Jewelry
⫸ Restricted covenant and negative covenant. Answer: Negative
covenant - tells the borrower what they are not allowed to do.
Restricted covenant - limits what the borrower can or cannot do in order
to protect the lender's risk.
⫸ What's the term of loan in inventory. Answer: They are short-term
loans because inventory turns quickly.
12TH EDITION CHUCK WILLIAMS TEST
BANK CERTIFICATION REVIEW SET 2026
ANSWERS GUARANTEED PASS
⫸ CAMELS. Answer: Capital adequacy, Asset quality, Management
Quality, Earnings, Liquidity, Sensitivity to market risk
⫸ 5 C's of credit. Answer: Character, Cash Flow, Collateral, Condition,
Capacity
⫸ DSCR. Answer: (Debt Service Credit Ratio) - Can I cover all the
payments that I need to. "Do you earn enough to pay your loans?"
⫸ Negative Covenant. Answer: You can't buy more things without
talking to your banker
⫸ SPAC. Answer: (Special Purpose Acquisition Company) It raises
money through an IPO then it merges with a company
⫸ What types of loans do banks make. Answer: Consumer, Mortgage,
Car, Student, Business, Construction, Agriculture, Equipment,
Specialized Loans, Government Loans
, ⫸ Who sets the legal lending limit and what does that mean?. Answer:
Banks. It is a regulation that controls how much a bank is allowed to
lend to a borrower.
⫸ What's the process in lending?. Answer: It involves meeting the
borrower, collecting information, analyzing credit and collateral, getting
approval, closing the loan, and then monitoring it afterward.
⫸ How do you start it as a lender?. Answer: It starts with prospecting
and not application.
⫸ List different types of collateral your customer can provide. Answer:
Homes, Land, Cars, Trucks, Business Assets, CD's, Stocks, Bonds,
Crops, Jewelry
⫸ Restricted covenant and negative covenant. Answer: Negative
covenant - tells the borrower what they are not allowed to do.
Restricted covenant - limits what the borrower can or cannot do in order
to protect the lender's risk.
⫸ What's the term of loan in inventory. Answer: They are short-term
loans because inventory turns quickly.
