Professional Documents
Culture Documents
Group 1 UNIT: Methods of Establishing Credit Leader: Member
Group 1 UNIT: Methods of Establishing Credit Leader: Member
Leader:
Santaygillo, Lyka Rose
Member:
Abad, Cherry Ann L.
Cainghog, Hanna Andrea
Catubag, Rizalyn
Cuevas, Venice
Fiesta, Ma Ralaine
Gamrot, Melissa
Pangan, Elwin
Vitriolo, Danmar kris
Multiple Choice
1. Qualities of Good Credit Manager.
A. Lacking Integrity and Unprepared
B. Analytical skills and Great Communication skills
C. Takes Credit for Others’ Work
D. Demanding Authority
3. ____________ are those who extend the loan or credit to a person, an organization, or a firm.
A. Collectors
B. Debtors
C. Debt Collectors
D. Creditors
4. ________________are those who takes the loan and in return has to pay back the amount of
money within a stipulated time period with or without interest.
A. Collectors
B. Debtors
C. Creditors
D. Credit Managers
5. They use letters and phone calls to contact delinquent borrowers and try to convince them to
repay what they owe.
A. Creditors
B. Debtors
C. Debt Collectors
D. Credit Managers
6. They may report delinquent debts to credit bureaus to encourage consumers to pay, since
delinquent debts can do serious damage to a consumer's credit score.
A. Debt Collectors
B. Credit Managers
C. Collectors
D. Creditors
7. They are the one who responsible for overseeing the credit granting process for a company.
A. Collectors
B. Credit Managers
C. Debt Collectors
D. Creditors
8. Their job is to optimize company sales and ________ bad debt losses by maintaining the
credit policy.
A. Reduce
B. Decrease
C. Lower
D. Lessen
9. In this element of credit, a lender must also look at a number of loans that a person currently
has out.
A. Debt History
B. Income
C. Current Debt
D. Collateral
10. One of the main factors that goes into a person's creditworthiness is explained in this element
of credit.
A. Debt History
B. Income
C. Current Debt
D. Collateral
12. This part is where a person's credit can be determined by how much money he currently has
at his disposal.
A. Debt History
B. Income
C. Current Debt
D. Collateral
13. He introduce the four elements of credit.
A. Michelle Wof
B. Michelle Wolfe
C. Michael Wof
D. Michael Wolfe
14. It indicates that you are willing to take a personal risk for the sake of your business.
a. Collateral
b. Capital
c. Condition
d. character
16. The ______ like promissory notes, bills of exchange, cheques, credit card, etc. are used in the
modern society as money substitutes.
A. Credit System
B. Credit Instruments
C. Credit Cards
D. Economy
17. Function of Credit that stimulates and finances production in anticipation of demand.
A. Stability
B. Benefits to Consumers
C. Helpful to Production
D. Economy in the use of money
18. Function of Credit that increased the scope of both internal and external trade as trade
payments.
A. Promotion of trade especially foreign trade
B. Stability
C. Easy exchange and remittance
D. Helpful to production
19. Function of Credit that minimize the cash transactions and make the scope of exchange wider
and remittance of funds easier.
A. Expansion of Bank Credit
B. Benefits to Consumers
C. Stability
D. Easy exchange and Remittance
20. The lender wants to know that your business is able to repay the loan.
A. Collateral
B. Condition
C. Capacity
D. Capital
True or False
_______1. Credit is the ability of a customer to obtain goods or services after payment.
_______2. An individual's creditworthiness can be measured in a number of different ways.
_______3. A person who has a large income or significant savings is considered a stronger
candidate to lend to than a person who does not have a large income, as the poorer person does
not have the same access to funds.
_______4. The credit system economises the use of paper money and metallic notes.
_______5. Industries get long-term credit from foe commercial banks and the short-term credit
from the development banks.
_______6. Collectionsofficers prepare statements to be given tocreditdepartments and banks
when customers fail to meet their payment agreements or when no payment agreement can be
made.
_______7. Collections officers write letters to customers to inform them of their debts.
_______8. Debtors are those who takes the loan and in return has to pay back the amount of
money within a stipulated time period with or without interest.
_______9. Creditors use letters and phone calls to contact delinquent borrowers and try to
convince them to repay what they owe.
_______10. Collectors may report delinquent debts to credit bureaus to encourage consumers to
pay, since delinquent debts can do serious damage to a consumer's credit score.
_______11. Credit Managers are responsible for overseeing the credit granting process for a
management.
_______12. The secondary function of a Credit Controller is coordinating the debts of existing
creditors and deciding whether to allow credit to a debtor – ultimately managing all money
borrowed or owed to your business.
_______13. Debt Collectors prepare statements to be given tocreditdepartments and banks when
customers fail to meet their payment agreements or when no payment agreement can be made.
_______14. If the issue of credit is properly regulated, it tends to stabilise trade and reduce
fluctuations in prices.
_______15. The bills of exchange have decreased the scope of both internal and external trade as
the trade- payments can now be made without the transfer of funds or gold.
_______16. The credit instruments minimize the cash transactions and thereby make the scope of
exchange wider and the remittance of funds easier.
_______17. Unsecured loans are loans that are backed by collateral.
_______18. A person with a smaller income will also have access to larger loans.
_______19. If a person has a history of defaults, he will be considered a far higher risk than a
person with a clean record of on-time paybacks.
_______20. A lender must also look at the number of loans that a person currently has out.
Identification