To Avoid Litigation, Some Companies That Extend Credit Choose To

question 12

Multiple Choice

To avoid litigation, some companies that extend credit choose to:

• A)ignore a customer's request for credit.
• B)omit the explanation for credit denial.
• C)indirectly hint at the credit denial.
• D)blame the consumer reporting agency.

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Definitions:

Callable Bonds

A type of financial instrument that allows the issuer to buy them back prior to the expiration date, for a pre-determined price.

Bond Indenture

A legal contract specifying the terms and conditions under which a bond is issued, including interest payments and repayment at maturity.

Fiscal Year

A twelve-month period used for accounting and financial reporting purposes, which may or may not align with the calendar year.

Effective Interest Rate Method

A method of amortizing the discount or premium on bonds payable that reflects the constant rate of interest over the life of the bond.