Which of the Following Would Be an Indication of a Wise

question 71

Multiple Choice

Which of the following would be an indication of a wise use of credit?

• A)Your checks are bouncing.
• B)Collection agencies are calling you frequently.
• C)There are no pending charges on your credit cards.
• D)You have no cash reserves and must borrow for incidentals.
• E)You have missed a few loan payments.

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Definitions:

Common Stock

Represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Authorized

Officially given permission or power to do something, often used in legal and corporate contexts.

Issued

Refers to the process of allocating or distributing something, such as shares or official documents, to individuals or entities.

Outstanding

Refers to shares that have been issued by a company and are currently held by investors, including shares held by the public and restricted shares held by company insiders.