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3 years ago

Identify factors affecting an individual’s credit rating

Business

1 answer:

Alex Ar [27]3 years ago

8 0

Answer:

There are several factors affecting an individual's credit rating. Among those, some of the significant ones are given:

1. Payment history

2. Amounts owed

3. Credit mix and types

4. Length of credit history

5. Current credit

Explanation:

1. Payment history: It means within how many days or periods an individual has completed the payment. If the individual missed a bill by a couple of days, it would cause that person's credit rating.

2. Amounts owed: It means how much money the individual owes from the overall credit accounts. Specifically, the total loan amount.

3. Credit mix and types: If his loan includes student loans, mortgage loans, auto loans, etc., this credit mix will also increase the individual's credit rating.

4. Length of credit history: The age of the person's earliest credit account, age of his current account, the average age of the current account, and whether the individual has used that account.

5. Current credit: If the individual takes new loans very often, it will decrease his credit rating. Therefore, the person has to think twice before applying for credits.

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Quince's right to hold ray liable for any damages he has to pay is the right of indemnification. The correct answer is letter A. Indemnification is defined as a contractual obligation by which one party is obliged to compensate the loss by which the associated party has experienced because of the act done by the other.

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3 years ago

If an insured has a Life Paid-Up at 75 Policy (a limited-pay life paid-up at age 75), what would the beneficiary receive if the

vladimir2022 [97]

Answer: The beneficiary will receive the full-face value of the policy.

Explanation: A life insurance policy is an insurance policy that covers the life of the insurer in the case of an untimely death. There are different types of life assurance policies.

A life paid up at 75 policy is a type of life assurance policy that covers the insurer up to the age of 75 years. if the insurer now dies before attain the age of 75 years, the face value of the policy will be paid to his beneficiary while if he lives above age 75 years, the policy ceases.

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4 years ago

Last year Mike bought 100 shares of Dallas Corporation common stock for $35 per share. During the year he received dividends of

jolli1 [7]

Answer:

Rate of return is 13.2%

Explanation:

Rate of Return is the actual return that an investor receives from an investment in asset during a specific period of time. If the investment is made in the stocks, It includes the dividend received and the price change of the stock.

Total return Received = Dividend + Price change = $1.87 + ($37.75 - 35 ) = $4.62

Rate of Return = Total return During the period / Initial Price of the stock

Rate of Return = $4.62 / $35 = 0.132 = 13.2%

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3 years ago

Sandhill Company deducts insurance expense of $234000 for tax purposes in 2021, but the expense is not yet recognized for accoun

LenaWriter [7]

Answer:

$242,800

Explanation:

Tax Base Accounting Base Temporary Difference

2021 Insurance Expense $234,000 0 $234,000

This insurance expense will result in taxable temporary difference=$234,000*20%=$46,800

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Income Tax Expense Dr.$46,800

Deferred Tax liability Cr.$46,800

Therefore Income tax expense will be=$196,000+$46,800=$242,800

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3 years ago

Charging high prices to earn large profits during a time when there is little competitionrepresents a ________ strategy:________

Usimov [2.4K]

Answer:

Skimming

Explanation:

Price skimming, also known as skim pricing, is a pricing strategy used by those who face little or no competion, what normally happens is that a firm charges a high price and then gradually may need to lowes the price to attract more customers.

Price skimming is used to earn large profits especiallyn when a new product or service is introduced into the market. The pricing strategy is largely useful iwhen the firm is the first to enter the marketplace. The aim of this is to generate the large profit in the shortest time possible.

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3 years ago

Read 2 more answers