Why Is It Important to Establish a Credit History

question 14

Multiple Choice

Why is it important to establish a credit history?

• A) To demonstrate responsibility with credit
• B) To experience perma-debt
• C) To go into outstanding debt
• D) None of these

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Definitions:

Concentration Ratio

A measure used to determine the market share or relative size of the top firms in an industry as an indicator of the level of competition.

Standardized Product

Products that are uniform in quality and performance, produced in large quantities, and often interchangeable with products from different manufacturers.

Nonprice Competition

A marketing strategy where companies compete on factors other than price, such as product quality, service, or branding.

Easy Entry

Market condition where there are few if any barriers for new firms to enter and compete in an industry.