A Major Advantage of Discriminant Models to Assess the Credit

question 84

True/False

A major advantage of discriminant models to assess the credit risk of a customer is the stability of the coefficient weights over time.

---

Definitions:

Not-For-Profit Accounting

Not-For-Profit Accounting encompasses the principles and practices used by nonprofit organizations to record and report their financial activities, focusing on accountability and fund management rather than profitability.

Acquisition

The process of obtaining control of another company by purchasing its shares or assets.

Significant Influence

The power to participate in financial and operating policy decisions of an investment, without having full control or outright ownership.

Recognition of Goodwill

The accounting practice of formally acknowledging and reporting the value of goodwill on the financial statements.