A Credit Analyst Is Going Over a Dun & Bradstreet

question 13

Multiple Choice

A credit analyst is going over a Dun & Bradstreet report on a potential new customer.The credit history shows that the company paid two of its many suppliers late within the last six months.The least likely conclusion to be drawn is

• A)that the company would be a poor credit risk.
• B)that the company is a good credit risk.
• C)that the company may have disputes with its supplier(s).
• D)that the company is experiencing a cash crisis.

---

Definitions:

Abuse

The improper usage or treatment of an entity, often to unfairly or improperly gain benefit.

Bankruptcy Code

A set of federal laws and regulations governing the process by which individuals, businesses, and other entities can declare bankruptcy in the United States, outlining the procedures for dealing with debts.

State Law

State Law comprises the laws and regulations enacted by the legislative bodies or established through precedents within a state's jurisdiction.

Bankruptcy Abuse, Prevention and Consumer Protection Act of 2005

A U.S. federal law designed to curb bankruptcy filings by setting stricter standards.