Credit Scores in the 500-600 Range Will Likely Result in

question 87

Multiple Choice

Credit scores in the 500-600 range will likely result in

• A) lower interest rates.
• B) higher interest rates.
• C) automatic acceptance of your credit application.
• D) preferential treatment of your application.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.

Highly Automated Industries

Sectors where machines and advanced technologies preponderantly perform production and operational processes, reducing human intervention.