Concept:
An action potential is an electrical signal generated in a neuron when the membrane potential reaches a critical level. This critical transmembrane potential is called the threshold potential.
Once the threshold is reached, rapid depolarization occurs and a nerve impulse is generated.
Step 1: Understand action potential generation.
A neuron remains at resting potential until sufficient stimulation causes the membrane potential to reach a critical value.
Step 2: Identify the term for this critical potential.
The transmembrane potential at which an action potential begins is called:
\[
\text{Threshold}
\]
Hence, the correct answer is:
\[
\boxed{(C)\ \text{Threshold}}
\]