Credit reports/Credit report/Activity Multi choice assessmnet

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(correct answers are bold & listed as answer a.)

  • 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
  • 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
  • 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
  • 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
  • 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