Which of the Following Is TRUE of Credit Scoring

question 244

Multiple Choice

Which of the following is TRUE of credit scoring?

• A)It audits the amount of assets the applicant has available for use in securing the credit.
• B)It specifies the terms of sale for customers who have been extended credit by a firm.
• C)It is an ongoing review of a firm's accounts receivable to determine whether customers are paying according to the stated credit terms.
• D)It applies statistically derived weights to an applicant's scores on key financial and credit characteristics.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, by practicing ethical and sustainable operations.

Greenwashing

Misleading consumers regarding a firm’s environmental practices or the environmental benefits of a certain product.

Recycling Process

The series of actions taken to collect, process, and convert waste materials into new products to prevent waste of potentially useful materials.

Two-Way Dialogue

A form of communication where both parties actively participate, listen, and respond to each other, fostering mutual understanding and engagement.