Credit Scoring Systems Are Often Used by Lenders to Determine

question 40

True/False

Credit scoring systems are often used by lenders to determine your creditworthiness.

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Definitions:

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, entitling them to receive a specified amount of interest and repayment of the principal.

Stockholders

Owners of the stock of the corporation.

Dividends

Payments made by a corporation to its shareholder members, usually distributed from the company's profits.

Liquidation

Occurs when a business is terminated, the assets are sold, and liabilities and partners are paid off.