________ is a procedure resulting in a number reflecting an applicant's credit strength, derived as a weighted average of the scores obtained on a variety of key financial and credit characteristics.
A) Credit scoring
B) Aging of receivables
C) CAPM
D) The economic order quantity model

Question

Quizplus · Accepted Answer

Credit scoring is a procedure that results in a number reflecting an applicant's credit strength. It is calculated by considering various financial and credit characteristics, like credit history, outstanding debts, and payment history, and determining their weighted average score. This number helps lenders determine the risk associated with lending money to a particular person or entity.

________ Is a Procedure Resulting in a Number Reflecting an Applicant's