All of the Following Are Problems Associated with Using the Z-Score

question 18

Multiple Choice

All of the following are problems associated with using the Z-score model to make credit risk evaluations except _______________.

• A) The model does not benchmark firms to the average in the industry
• B) The model does not use important data that is difficult to quantify such as the phase of the business cycle.
• C) The model categorizes firms as either high risk or low risk
• D) All of these are problems associated with using the Z-score model

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Definitions:

United States

A country in North America comprising 50 states, known for its diverse geography, culture, and significant impact on global affairs.

User Requirements

Specifications or needs expressed by users that should be fulfilled by a system or product to satisfy its intended use in a particular context.

System Designs

System designs refer to the process of defining the architecture, components, modules, interfaces, and data for a system to satisfy specified requirements.

RAD

Rapid Application Development, a software development methodology that emphasizes quick prototype releases and iterations to expedite development and elicit early user feedback.