Guy Owns a Lumber Yard Working Directly with Home Builders

question 69

Essay

Guy owns a lumber yard working directly with home builders and contractors.Margie,a contractor new to the area,wants to set up a credit account with the lumber yard.She has a good history of successful and profitable projects.What questions should Guy ask in evaluating the Margie's credit status? Relate to the 5 C's of credit.

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Definitions:

Partnership Obligation

Legal responsibilities and duties that arise in a business partnership, including fiduciary duties and liabilities shared among partners.

Participated

Taking part or getting involved in an activity or event.

Knew About

Had awareness or knowledge of a fact, situation, or detail, often relevant in legal and decision-making contexts.

Agency Law

The area of law dealing with the actions of agents, who are authorized to act on behalf of others (principals) in legal or business transactions.