Asked by Chetan Aggarwal on Jul 05, 2024
Verified
The process of determining the likelihood that customers will not pay is called ____________.
A) The terms of sale.
B) Credit analysis.
C) The collection policy.
D) The payables policy.
E) Disbursement analysis.
Credit Analysis
The process by which a lender evaluates the creditworthiness of a potential borrower, assessing the ability to repay a loan.
Likelihood
The probability or chance of an event occurring or a hypothesis being correct.
Pay
Remuneration given by an employer to an employee for their labor or services.
- Engage credit evaluation procedures to examine the creditworthiness of potential clients.
Verified Answer
BC
Billy CruzeJul 06, 2024
Final Answer :
B
Explanation :
Credit analysis is the process used to evaluate the likelihood that customers will fail to pay. It assesses the creditworthiness of potential borrowers, which is crucial for businesses in managing their credit risk.
Learning Objectives
- Engage credit evaluation procedures to examine the creditworthiness of potential clients.
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