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

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