What Is the Primary Purpose of Credit Analysis

question 14

Multiple Choice

What is the primary purpose of credit analysis?

• A)determine the optimal credit period
• B)establish the effectiveness of granting a cash discount
• C)determine the optimal discount period, if any
• D)access the frequency and amount of sales by customer
• E)evaluate whether or not a customer will pay

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Definitions:

Adrenal Gland

Endocrine glands located above the kidneys that produce hormones such as adrenaline and cortisol, which regulate the body's stress response and other vital functions.

Strong Craving

An intense desire or urge for a specific substance, activity, or experience, often associated with addiction or habit formation.

Adrenal Glands

Small glands located on top of each kidney; they produce hormones such as adrenaline and cortisol which help manage stress and other bodily functions.

Salty Tastes

One of the basic tastes, characterized by the presence of salt, often leading to enhancement of flavor in foods.