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Basic Question 12 of 20
Lately, Inc. is having trouble arranging for credit from new suppliers primarily because Lately has a company policy of paying suppliers 21 days after the due date. Lately has been rejected because of its ______.
B. character
C. capital
D. collateral
A. capacity
B. character
C. capital
D. collateral
User Contributed Comments 8
| User | Comment |
|---|---|
| narfey | what is character? |
| DariSH | character is quality |
| harpalani | Why not capacity? |
| johntan1979 | Should be E. name |
| johntan1979 | To answer harpalani: Not capacity because they have no problem in paying. Ability to pay is ok. |
| schweitzdm | I guessed capacity too. Turning these into flashcards. |
| tichas | Character is behavior , capacity is ability. You might have the ability or capacity to pay but for unknown reasons you pay late and that is behavior or character. |
| abellochs | LOL about E. |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe credit risk and its components, probability of default and loss given default
CFA® 2025 Level I Curriculum, Volume 4, Module 14.