To Establish Creditworthiness and to Have a Good Credit Score,one

question 95

Multiple Choice

To establish creditworthiness and to have a good credit score,one should probably first:

• A)open savings and checking accounts.
• B)use credit extensively.
• C)arrange for a small loan.
• D)pay cash for all purchases.
• E)arrange for a large loan from close relatives.

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Definitions:

Net Operating Income

The revenue from a business's operations after subtracting operating expenses, excluding taxes, and interest.

Common Fixed Expense

Costs that do not vary with production volume, and are shared among different products or business segments.

Contribution Margin Ratio

The portion of sales revenue left over after variable expenses have been deducted, expressed as a percentage of sales revenue.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as raw materials and direct labor.