The Basic Factors That Are Reviewed When Evaluating the Creditworthiness

question 31

Multiple Choice

The basic factors that are reviewed when evaluating the creditworthiness of a potential customer are called the:

• A)terms of sale.
• B)receivables factors.
• C)five Cs of credit.
• D)collection policy determinants.
• E)credit scores.

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Definitions:

Quantity Supplied

The amount of a commodity that producers are willing to sell at a particular price at a given period.

Supply

The total amount of a specific good or service that is available to consumers.

Demand Determined

Refers to situations where the quantity of a good or service produced is directly influenced by consumer demand.

Government-imposed Maximum Price

A legally set ceiling on the price at which a good or service can be sold, typically to protect consumers from excessively high prices.