Credit Reports/Sources of Credit Reports/Assessment

Assessment
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