Prior to Making a Credit Decision We Should Always Check

question 42

Multiple Choice

Prior to making a credit decision we should always check the applicant's

• A)character,capacity,and collateral.
• B)collateral,credit,and cash.
• C)capacity,cash,and collateral.
• D)collateral,character,and current assets.

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Definitions:

Fair Consideration

In the context of contracts, it refers to something of value that is exchanged between parties, which is considered reasonable and equitable.

Shares Issue

The process by which a company distributes new shares of stock to investors or the public for the first time.

Surviving Corporation

A corporation that remains intact and retains its identity after a merger or acquisition, absorbing one or more other companies.

Absorbs

The process by which something takes in or assimilates a substance, energy, or information.