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Discuss the Factors That Are Used to Determine Credit Scoring

question 59

Essay

Discuss the factors that are used to determine credit scoring in the BEACON model.


Definitions:

Operating Assets

Assets used by a business in its day-to-day operations to generate revenue.

Controllable Margin

A financial metric that represents the amount of profit or contribution margin that management can directly influence through its decisions.

Operating Assets

Assets that a business uses for its day-to-day operational activities to generate revenue, excluding investment and non-operational assets.

Return on Investment

A financial ratio that calculates the profitability of an investment by dividing the net profit by the initial cost of the investment.

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