When Evaluating the Creditworthiness of an Individual, the Term Character

question 347

Multiple Choice

When evaluating the creditworthiness of an individual, the term character refers to the:

• A) Nature of the cash flows of the customer's business.
• B) Customer's financial resources.
• C) Types of assets the customer wants to pledge as collateral.
• D) Customer's willingness to pay his/her bills in a timely fashion.
• E) Nature of the customer's line of work.

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Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture.

Pluralism

A condition or system in which two or more states, groups, principles, sources of authority, etc., coexist.

Average Age

The mean age of a particular group of individuals or entities, calculated by dividing the sum of their ages by the number of individuals.

Cost Argument

A principle suggesting that maintaining certain practices, such as equal employment opportunities, can reduce costs associated with turnover, absenteeism, and training by utilizing a larger, more diverse workforce.