The Set of Rules That Determines Whether or Not to Extend

question 96

Multiple Choice

The set of rules that determines whether or not to extend credit is known as:

• A)Credit analysis
• B)Credit policy
• C)Multiple discriminate analysis
• D)The terms of trade credit

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Definitions:

Adequacy

Adequacy refers to the suitability of something to meet the needs in its context or the sufficiency in quantity or quality to fulfill a specific requirement.

Consideration

Something of value exchanged between parties within a contract, serving as the reason or motive for entering into the agreement.

Adequacy

The sufficiency to meet the needs or requirements; often assesses whether something is enough in quantity or meets a certain standard.

Consideration

Something of value (such as money, services, or goods) exchanged between parties in a contract.