Multiple Choice
Which type of accounting is primarily used by successful businesses to ensure that work is completed as expected and operations run efficiently?
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1. Introduction to Accounting
Types of Accounting
Multiple Choice
Which type of lender is more likely to approve a loan if your credit score is not strong?
A
Subprime lender
B
Commercial bank
C
Investment bank
D
Credit union
Verified step by step guidance1
Understand the concept of credit score: A credit score is a numerical representation of a borrower's creditworthiness. A lower credit score indicates higher risk for lenders.
Learn about the types of lenders: Subprime lenders, commercial banks, investment banks, and credit unions are different types of financial institutions that provide loans.
Define subprime lenders: Subprime lenders specialize in providing loans to borrowers with lower credit scores or weaker credit histories. They typically charge higher interest rates to compensate for the increased risk.
Compare subprime lenders to other lenders: Commercial banks, investment banks, and credit unions generally prefer borrowers with strong credit scores and may not approve loans for individuals with poor credit histories.
Conclude that subprime lenders are more likely to approve loans for borrowers with weak credit scores, as they cater specifically to higher-risk individuals.
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