Sources of Credit Reports/Assessment
|Unit 3.1- Sources of Credit Reports|
1. Which of the following is a definition of a credit report?
- a. An instrument that will provide ease in obtaining bank financing
- b. A required report by most government agencies
- c. A tool to assist a seller in assessing payment potential of a customer
- 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. meeting legal requirements of a business license.
- b. providing a way in which a business can solidify a bank line of credit.
- c. providing a debtor the means to outline his/her business principles.
- d. offering an opportunity for a creditor to review key information to make an informed decision.
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. National Association of Credit Manager (NACM)
- b. Customer financial reports
- c. Experian credit report
- d. Industry trade groups
5. Which of the following is an example of an indirect method of credit investigation?
- a. Wall Street Journal
- b. International bank records
- c. Dun & Bradstreet credit report
- d. customer financial reports
(Correct answers: 1=c, 2=d, 3=a, 4=b, 5=c.)