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:

Fearful Consequences

Negative outcomes that are dreaded or feared, often used as a deterrent for certain behaviors.

Attribution Theory

A concept in social psychology that explains how individuals infer the causes of their own and others' behavior and events.

Fundamental Attribution Error

The tendency to attribute others' behaviors to their character or personality while underestimating situational factors.

Milgram's Study

A series of social psychology experiments conducted by Stanley Milgram, which measured the willingness of participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.