Question : --------------- Analysis is useful when a firm offers credit to a new customer or a dealer. The Manager of the firm would like to know whether to allow or extend credit to them or not. Such Analysis is also useful for a bank before granting loan.
Option 1: Securities Analysis
Option 2: Credit Analysis
Option 3: Debt Analysis
Option 4: None of the above
Correct Answer: Credit Analysis
Solution : Answer = Credit Analysis
Businesses can use credit analysis to assist them decide whether to extend credit to a potential client or dealer. It entails a thorough analysis of the financial health of an organisation.
Hence, the correct option is 2.