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The willingness of a credit applicant to pay her or his bills is measured by: An

ID: 2700303 • Letter: T

Question

The willingness of a credit applicant to pay her or his bills is measured by: Answer


capacity
capital
conditions
character
collateral


Marketable securities are held primarily to meet: Answer
transactions motives
precautionary motives
speculative motives
leverage motives
A firm%u2019s excess cash balance during a particular month could be best deployed if it were Answer
financed with short term investments
financed with long term investments
invested in short term investments
invested in long term investments

A mercantile credit bureau serves primarily as a (n): Answer
collection agency for delinquent accounts
common meeting place where credit managers may exchange information
organization through which accounts receivable may be sold to other businesses
central record-keeping organization for credit information on business firms

The factor, unlike the commercial finance company: Answer
engages in accounts receivable financing
purchases the accounts receivable outright
assumes limited credit risks
is not responsible for the collection of accounts

Firms who wish to obtain short-term secured loans generally have two major current assets available as collateral in the form of: Answer
cash and marketable securities
receivables and inventory
receivables and factoring
inventory and floor planning


Explanation / Answer

capital

precautionary motives

invested in short term investments

collection agency for delinquent accounts

is not responsible for the collection of accounts

receivables and factoring