Credit Reports/Sources of Credit Reports/Assessment
|Sources of Credit Reports||
Introduction | What is a Credit Report? | Purpose of a Credit Report | Direct Sources of Credit Information | Indirect Sources of Credit Information | Conclusion | Activities | Assessment | Resources | External Links
Correct answers are bold & listed as answer a.
- 1. Which of the following is a definition of a credit report?
- a. A tool to assist a seller in assessing payment potential of a customer
- b. An instrument that will provide ease in obtaining bank financing
- c. A required report by most government agencies
- d. A report that is the best source to view financial information of a potential customer
- 2. The concept of a credit report includes
- a. offering an opportunity for a creditor to review key information to make an informed decision
- b. providing a debtor the means to outline his/her business principles
- c. meeting legal requirements of a business license
- d. a way in which a business can solidify a bank line of credit
- 3. The main purpose of a credit report is to
- a. establish a method for customers to obtain favorable payment terms
- b. clarify the credit rating of a potential customer
- c. allow a business to select qualified vendors
- d. clarify financial rumors about a company
- 4. Which of the following is an example of a direct method of credit investigation?
- a. Customer financial reports
- b. National Association of Credit Manager (NACM)
- c. Experian credit report
- d. industry trade groups
- 5. Which of the following is an example of an indirect method of credit investigation?
- a. Dun & Bradstreet credit report
- b. Customer financial reports
- c. Wall Street Journal
- d. International Bank records