Credit reports/Credit report/Activity Multi choice assessmnet

(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