The set of rules that determines whether or not to extend credit is known as:
A) credit analysis.
B) credit policy.
C) multiple discriminate analysis.
D) the terms of trade credit.

Question

Quizplus · Accepted Answer

The set of rules that determines whether or not to extend credit is known as credit policy. Credit analysis refers to the evaluation of a borrower's creditworthiness, multiple discriminate analysis is a statistical model for determining the probability of default, and the terms of trade credit refer to the specific conditions of a credit transaction.

The Set of Rules That Determines Whether or Not to Extend