Sources of Credit Reports/Assessment

Unit 3.1-Sources of Credit Reports 

Introduction | Components | Purpose | Direct Sources | Other Sources | Indirect Sources | Summary | Resources | Activities |


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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