In Determining the Creditworthiness of a Customer from Financial Statements

question 70

Multiple Choice

In determining the creditworthiness of a customer from financial statements, the statements can indicate all of the following EXCEPT:

• A)Financial strength
• B)Ability to repay credit obligations
• C)Length of time needed to repay on credit
• D)Proposed budgetary expenses for the near future

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Definitions:

Contract Void

A contract void is a contract that is deemed legally nonexistent and unenforceable from the outset, due to illegality or other serious defects.

Undue Influence

Undue influence is a legal concept where an individual is able to persuade another's decisions due to the relationship between the two, often leading to an unfair advantage.

Misrepresentation

A false statement of fact made by one party to another, which induces that other party to enter into a contract.

Equitable Remedy

A non-monetary court order to perform or refrain from performing a specific act, aimed at achieving fairness.