Explain why credit scoring is typically applied to consumer credit decisions rather than to mercantile credit decisions.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

See More Books

Question Posted: Mar 05, 2012 04:04 AM

See More Questions

Why are most ethical decisions accountants face complex rather than straight forward?
Explain why in practice arbitrage-free models are typically used rather than equilibrium models.
Why do interest rates on consumer loans typically average higher than on most other kinds of loans?
A quality of information demonstrated when different independent observers could reach the same general conclusions that the information represents what it purports to represent is: O a...
Assume that you qualify for a $25,000 loan from the Canada Student Loans Program to help finance your education. You are considering whether to repay this loan on graduation with a fixed interest...
Answer each of the following: a. An internal revenue service auditor knows that $3 \%$ of all income tax forms contain errors. Returns are assigned randomly to auditors for review. What is the...
The data in Table B. 5 present the performance of a chemical process as a function of several controllable process variables. a. Fit a multiple regression model relating $\mathrm{CO}_{2}$ product...
Salem Inc, reported the following data: Net income ............$168,750 Depreciation expense .......... 18,750 Gain on disposal of equipment .... 15,375 Decrease in accounts receivable ..... 10,500...
x Bond Issue B (A) Cash Interest Paid $600,000.0 (B) Period Interest Expense Period 12.0% x (E) x 12.5% Ending 3/12 x 3/12 (C) Amort. (A) - (B) (D) (E) Carrying Value Unamortized $600,000 Balance (D)...
On May 1, 2017, Park Flying School Ltd., a company that provides flying lessons, was started with an investment of W45,000 cash in the business. Following are the assets and liabilities of the...
What is the role of the five Cs of credit in the credit selection activity?
What are the basic trade-offs in a tightening of credit standards?
Is it true that a monopoly can charge any price and that customers will still have to buy the product? Do you agree or disagree. Why?
A furnace wall consists of $100 \mathrm{~mm}$ thick refractory brick and $800 \mathrm{~mm}$ thick insulating firebrick separated by an air gap. The outside wall is covered with a \(20...
Visit the social bookmarking site you joined and look up a topic of interest for you. Select ten headlines that have been saved by other users. Classify the headlines according to the type of...
A steel pipe of $100 \mathrm{~mm}$ bore and $10 \mathrm{~mm}$ wall thickness, carrying steam at $250^{\circ} \mathrm{C}$, is insulated with $30 \mathrm{~mm}$ of a molded high-temperature...
A small hemispherical oven is built of an inner layer of insulating firebrick $110 \mathrm{~mm}$ thick, and an outer covering $80 \%$ magnesia $45 \mathrm{~mm}$ thick. The inner surface of the...
Carnot refrigeration cycle absorbs heat at $280 \mathrm{~K}$ and rejects heat at $310 \mathrm{~K}$. (a) Calculate the coefficient of performance of this refrigeration cycle. (b) If the cycle is...
Congress estimated that the cost of increasing support and expanding pre-kindergarten education and infant and toddler child care would cost $28 billion in 2014. Since the U.S. government was running...
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
How far can a person long jump? In the 1968 Olympic Games in Mexico City, Bob Beamon of the United States increased the record by a remarkable 10%, a record that stood through the 1996 Olympics. List...
For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually at the...
As part of your financial planning, you wish to purchase a new car exactly 5 years from today. The car you wish to purchase costs $14,000 today, and your research indicates that its price will...
You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial...
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account balances: Estimated warranty liability $ 6,650 Income tax expense Mortgage...
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $...
Write a program call seq-multiplier which will print out numbers in a sequence multiplied by a number input by a user. Your program should store the sequence [52, 1, 34, 23, 18, -9, 21, 4, 79] in a...

Explain why credit scoring is typically applied to consumer credit decisions rather than to mercantile credit decisions.

Question:

Step by Step Answer:

Credit scoring is the ranking of an applicants overall cred...View the full answer

Principles Of Managerial Finance

Students also viewed these Finance questions