Business Essentials - Chapter 29
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12 terms
Terms | Definitions |
|---|---|
 character | refers to your honesty and willingness to pay a debt when it is due |
| sales credit | if you charge a purchase at the time you buy the good or service |
| capacity | refers to your ability to pay a debt when it is due |
| credit rating | a person's reputation for paying debts on time |
| debtor | anyone who buys on credit or receives a loan |
| loan credit | if you borrow $ to be used for some special purpose |
| credit | the privilege of using someone else's money for a period of time |
| trade credit | used by businesses when it receives goods from a wholesaler and pays for them at a later specified date |
| credit references | businesses/individuals from whom you have received credit in the past and/or who can help verify your credit record |
| capital | the value of the borrower's possessions |
| trust | the creditor believes that the debtor will honor the promise to pay later for goods and services that have been received and used |
| creditor | the one who sells on credit or makes a loan |
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