When developing a credit scoring report, many variables would be considered. Which of the following best represents the major factors Dun & Bradstreet 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

Dun & Bradstreet would primarily examine the financial statements, payment experiences, and negative public records of a company when developing a credit scoring report. While factors such as age, sales, and profits may also be considered, they are not as critical in determining creditworthiness as the financial health and payment history of the company. Dun & Bradstreet also considers other factors such as industry risk and company size in their credit scoring methodology.

When Developing a Credit Scoring Report, Many Variables Would Be