Which of the Following Statements About Credit Analysts' Models Is

question 37

Multiple Choice

Which of the following statements about credit analysts' models is true?

• A) Credit analysts focus primarily on demographic statistics and management's long-term investment strategies.
• B) Credit analysts have access to the same set of information that internal managers use.
• C) Credit analysts are concerned with assessing a government's ability to pay interest and principal on debt when due.
• D) Credit analysts rarely use comprehensive annual financial reports.

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, with rights to own property, incur debt, sue and be sued.

Ownership Right

A legal right that confers the possession of assets and the benefits that come from owning them.

Stockholder

An individual or entity that holds one or more shares of stock in a public or private corporation, thus owning a portion of the company.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings.