When developing a credit scoring report,many variables would be considered.Which of the following best represent the major factors D&B would examine?
A) the age of the management team,the dollar amount of sales,net profits,and long-term debt
B) the age of the company,the number of employees,the level of current assets
C) the financial statements,satisfactory or slow payment experiences,negative public records (suits,liens,judgments,bankruptcies)
D) the company's cash balances,return on equity,and its average tax rates

Question

Quizplus · Accepted Answer

The factors mentioned in option C are the most relevant when developing a credit scoring report. The financial statements provide an overview of the company's financial health, payment experiences indicate their ability to pay back loans, and negative public records can significantly impact their creditworthiness. The other options mentioned in A, B, and D are important factors but not as critical as those mentioned in C.

When Developing a Credit Scoring Report,many Variables Would Be Considered