When the creditworthiness of a customer is established, the firm will grant that customer
A) a credit rating.
B) a line of credit.
C) a credit policy.
D) a credit position.

Question

Quizplus · Accepted Answer

When a firm establishes the creditworthiness of a customer, they will grant that customer a line of credit, allowing them to make purchases on credit up to a certain limit. A credit rating refers to the customer's overall creditworthiness, while a credit policy outlines the terms under which credit is granted. A credit position is not a commonly used term in credit management.

When the Creditworthiness of a Customer Is Established, the Firm