A credit applicant’s ________ reflects his or her record of meeting past obligations. A) condition B) capacity C) control D) character ANSWER D
Date: September 19th, 2020
Increasing the length of the credit period can increase sales, but both the investment in accounts receivable and bad debt expenses are likely to increase as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following is a major external source of credit information? A) suppliers B) bank checking C) customers D) distributors ANSWER B
Date: September 19th, 2020
If a firm relaxes its credit standards, the volume of accounts receivable increases and so does the firm’s carrying cost. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following is true of credit scoring of suppliers? A) It is frequently used in business because the scoring information is easy to obtain. B) It is frequently used in business because scoring standards are too flexible. C) It is frequently not used in business because most business transactions involve mercantile credit which […]
Date: September 19th, 2020
Credit selection involves application of techniques for determining which customers should receive credit. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A firm’s credit standards are the minimum requirements for extending credit to a customer. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
The gives the bond issuer an option to redeem a specified fraction of the bond issue within a specified period at a predetermined price, but only by using funds from a subsequent equity offering. a. subsequent events provision b. clawback provision c. contingency provision d. conversion provision ANSWER B
Date: September 19th, 2020
With a make whole call provision: a. the firm to pay a call price that is sufficient to provide bondholders an ex post return equal to the return they would have received on a noncallable Treasury bond with the same original maturity as the called bond. b. the firm must retire either the entire (or […]
Date: September 19th, 2020
_ has become an important means by which huge infrastructure projects are privately financed. a. Private placement financing b. Infrastructure funding c. Project finance d. Country finance ANSWER C
Date: September 19th, 2020
