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1. What is credit scoring? In what types of situations is it most useful? If you were developing a credit scoring model, what factors might be most useful in predicting whether or not a credit customer would pay in a timely manner?

2. What are the key variables to consider when evaluating potential changes in a firm's credit standards? Why are only variable costs of sales included when estimating the firm's average investment in accounts receivable?

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  • Category:- Basic Finance
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