What Are the Two Largest Factors in Determining a Credit

question 16

Multiple Choice

What are the two largest factors in determining a credit score?

• A)Length of credit history and types of credit
• B)History of timely payments and length of credit history
• C)How much you owe in relation to your available credit and types of credit
• D)How much you owe in relation to your available credit and history of timely payments

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Definitions:

Net Operating Income

Represents the earnings derived from a company's ongoing, regular business activities, underscored by subtracting day-to-day expenses from total income.

Selling Price

The amount of money for which a product, asset, or service is sold, determining the revenue received from the transaction.

Fixed Expenses

Financial obligations that stay uniform in spite of changes in manufacturing or sales figures, like leasing expenses, salaries for workers, and insurance outlays.

Operating Leverage

A financial concept that measures a company's fixed costs as a percentage of its total costs, indicating how a change in sales will impact profits due to fixed expenses.