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.
Question : ------------analysis is done by the firm to know its borrowing capacity.
Question : ---------------- is a process by which the investor comes to know whether the firm is fulfilling his expectations with regard to payment of dividend, capital appreciation and security of money.
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