Credit Scoring Is The

question 113

Multiple Choice

Credit scoring is the:

• A)categorizing of customers into groups based on the length of time it takes each customer to pay for purchases.
• B)compiling of a list of accounts receivables segregated by the length of time each receivable has been outstanding.
• C)evaluation of the opportunity costs of a credit policy.
• D)process of quantifying the probability of default when granting credit to customers.
• E)tracking of both the number and the size of customer orders over a period of time.

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Definitions:

Cost-Leadership Strategy

A business strategy aiming to become the lowest cost producer in the industry, often leading to competitive pricing.

First-Mover Strategy

A market approach where a company is the first to enter a specific market or industry, aiming to gain an advantage by establishing brand loyalty and erecting barriers to entry for future competitors.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Global Diversification

A strategy that involves a company expanding its operations and investments across a wide range of countries and markets to reduce risk.