Final answer:
A customer credit check is a true control plan that an organization uses to ascertain a customer's credibility and financial reliability before transacting with them.
Step-by-step explanation:
Customer credit check is indeed a control plan that ensures an organization protects its resources by involving only with customers who have proven their ability to satisfy their liabilities. The statement that a customer credit check is a control plan to protect organizational resources is true. In the financial capital market, banks take several precautions before lending out money. The bank requires the prospective borrower to provide income sources and carries out a credit check on the individual's past borrowing. There are other methods as well, such as requiring a cosigner or collateral, to secure the loan and mitigate the risk of non-repayment.
For example, before a bank approves a loan, it typically requires the borrower to fill out forms and undergo a credit check. The bank wants to ensure that the borrower has a good credit history and the ability to repay the loan. This helps the bank minimize the risk of lending to customers who may default on their payments.