Sources of Credit Reports/Assessment

Assessment
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.)