Assuming That a Credit Decision Has Been Analyzed and Credit

question 2

Multiple Choice

Assuming that a credit decision has been analyzed and credit refused due to a negative expected profit,which of the following changes,if of sufficient magnitude,might change the decision to one of approval?

• A) Increase the percentage of profit margin.
• B) Decrease the probability of payment.
• C) Increase the discount rate.
• D) Reduce the expected profit.

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Definitions:

Cedar Point

An amusement park located in Sandusky, Ohio, known for its large collection of roller coasters.

Plus Sign

A mathematical symbol (+) denoting an operation of addition.

Diagram

A visual representation designed to illustrate or outline the structure of an argument, data, process, or system for clearer understanding.

Premises

Statements or reasons presented in support of a conclusion; in law, can also refer to a house or building, especially one used by a business.