16.2

Question 1

Proprietary credit card

Answer 1

Used in stores of company that issued it

Question 2

Credit policy

Answer 2

Written set of guidelines used by an organization to determine how many and which customers will be approved for credit

Question 3

Thress Cs of credit

Answer 3

Criteria used to evaluate creditworthiness of consumer credit applicants

Question 4

Credit report

Answer 4

Record of credit history and financial behavior for business or individual

Question 5

Credit bureau

Answer 5

private firm that maintains credit data and provides credit information to businesses for a fee

Question 6

Credit score

Answer 6

numerical measure of loan applicants creditworthiness at particular point in time

Question 7

Credit risk

Answer 7

potential of credit not being repaid

Question 8

Accounts receivable

Answer 8

list of people or businesses that owe money to company

Question 9

Accounts receivable aging report

Answer 9

when accounts receivables are due, as well as length of time accounts have been outstanding.

Question 10

Collection agency

Answer 10

company that collects past- due bills for a fee

Question 11

Five Cs of banking

Answer 11

criteria lenders use to evaluate creditworthiness of businesses