Sources of Credit Reports/Assessment

Assessment

1 Which of the following is a definition of a credit report?

	An instrument that will provide ease in obtaining bank financing
	A required report by most government agencies
	A tool to assist a seller in assessing payment potential of a customer
	A report that is the best source to view financial information of a potential customer

2 The concept of a credit report includes

	meeting legal requirements of a business license.
	providing a way in which a business can solidify a bank line of credit.
	providing a debtor the means to outline his/her business principles.
	offering an opportunity for a creditor to review key information to make an informed decision.

3 The main purpose of a credit report is to

	establish a method for customers to obtain favorable payment terms.
	clarify the credit rating of a potential customer.
	allow a business to select qualified vendors.
	clarify financial rumors about a company.

4 Which of the following is an example of a direct method of credit investigation?

	National Association of Credit Manager (NACM)
	Customer financial reports
	Experian credit report
	Industry trade groups

5 Which of the following is an example of an indirect method of credit investigation?

	Wall Street Journal
	International bank records
	Dun & Bradstreet credit report
	customer financial reports

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