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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. |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe credit risk and its components, probability of default and loss given default
CFA® 2024 Level I Curriculum, Volume 4, Module 14.