Which of the Following Is Listed as a Possible Indicator

question 20

Multiple Choice

Which of the following is listed as a possible indicator of a "bust-out"?

• A) Transactions are frequently made on account but are normally made in cash
• B) The company decreases its credit purchases
• C) Records are missing, inaccurate, or damaged
• D) Credit references cannot be verified

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Definitions:

Tenants by the Entireties

A form of joint tenancy of property that provides rights of survivorship and is available only to a Husband and Wife.

Joint Tenancy

A form of co-ownership where parties own property equally with the right of survivorship, meaning upon the death of one tenant, their share passes to the surviving tenant(s).

Tenancy

Tenancy is a legal term describing the possession and use of land or property rented from another, establishing rights and responsibilities between landlord and tenant.

Survival Clause

A contract provision that stipulates which parts of the agreement remain in effect after the contract has ended.