Which of the Following Is TRUE? the Most Important Factor

question 44

Multiple Choice

Which of the following is TRUE? The most important factor that a creditor considers in making its decision to grant credit to a debtor is

• A)the assets that the debtor has.
• B)whether other creditors have already taken security interests in the assets of the debtor.
• C)whether the debtor will be able to pay the credit obligation.
• D)whether someone can be found who will give a personal guarantee of the debtor's obligation to the creditor.
• E)whether the debtor is a corporation.

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm to another party.

Malfeasance

Wrongdoing or misconduct, especially by a public official.

U.S. Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.

Congress

The legislative body of a country, often bicameral, responsible for making laws, deciding on the national budget, and overseeing the government.