Asset Quality Standards and Supplier Due Diligence Quiz

CostEffectiveRoseQuartz avatar

Start Quiz

Study Flashcards

10 Questions

Which criteria must suitable asset finance assets satisfy, according to the text?

Durable, Identifiable, Moveable, Saleable

What is the significance of ensuring the asset can maintain an anticipated value in asset finance approval?

To cover a residual position

Why is it important for asset finance providers to know the planned use of the goods?

To assess the expected duration of use

What does the mnemonic DIMS stand for in relation to suitable asset finance assets?

Durable, Identifiable, Moveable, Saleable

How does the useful life expectancy of identical assets put to different uses vary?

It can differ significantly based on usage

What aspect of an asset's life cycle is crucial for asset finance providers to evaluate?

Planned use and duration of use

In asset finance, what does ensuring an asset is moveable imply?

The asset can be transported easily

Why is it necessary for asset finance assets to be identifiable?

To track and verify their existence

In asset finance approval, what does 'merchantable quality' primarily refer to?

The ability of the asset to be sold or disposed of in the ordinary course of business

Why do asset finance providers need to ensure that assets are saleable?

To facilitate disposal or recovery in case of default

Test your knowledge on ensuring asset titles and qualities meet standards and protecting against supplier fraud. Understand the concept of merchantable quality and its implications. Explore scenarios where customers may halt payments.

Make Your Own Quizzes and Flashcards

Convert your notes into interactive study material.

Get started for free

More Quizzes Like This

Asset Management Quiz
9 questions

Asset Management Quiz

PlentifulResilience avatar
Asset Disposal Best Practices
19 questions
Use Quizgecko on...