When Misused , Credit Can Result in

question 13

Multiple Choice

When misused , credit can result in

• A) Default.
• B) Bankruptcy.
• C) Loss of creditworthiness.
• D) A less satisfying life.
• E) All of the above.

---

Definitions:

New Venture

Refers to a new business enterprise or startup that is typically characterized by high risk and potential for growth.

Replacement

Refers to the process of substituting an old asset with a new one to maintain or improve operational efficiency.

Payback Period

A capital budgeting technique that rates projects according to the speed with which they return invested money.

Cumulative Profits

The total amount of profit a company has earned over a specific period, adding together all net profits and losses to date.