CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

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 ______.

A. capacity
B. character
C. capital
D. collateral
Correct Answer: B

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.
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