A Concentration of Credit Risk Is a Threat of Nonpayment

question 125

True/False

A concentration of credit risk is a threat of nonpayment from a single customer or class of customers that could adversely affect the financial health of the company.

---

Definitions:

New Economy

A term referring to the shift from traditional industry that the Industrial Revolution brought through, to an economy based on information computerization.

Sedentary Behavior

Activities that involve minimal physical movement and exertion, typically resulting in low energy expenditure, such as sitting or lying down for extended periods.

Vigorous Activities

Physical exercises or actions requiring substantial energy expenditure, often characterized by increased heart rate and sweating.

Human Relations

The study and management of how people interact in personal and professional settings, focusing on the development of interpersonal relationships and organizational culture.