Why would you use a credit score to appraise a supplier?
A.
to understand the level of risk the supplier poses to your organisation
B.
to understand if their prices reflect market value
C.
to find out how much money the supplier has in the bank
D.
to find out if the supplier has any unethical business practices
The Answer Is:
A
This question includes an explanation.
Explanation:
Explanation
A credit rating generates a score which reflects 'the level of risk an organisation poses when dealing with other businesses'. It's saying how risky it is to loan them money or do business with them by looking at how good they are at paying people. So a high credit rating will say they're good at paying back their loans and paying their suppliers on time. A poor credit rating will say they often miss payments or pay late.
A credit rating will not tell you how much money they have, or details on their prices. Credit scores looks at purely financial data so wouldn't help you analyse whether their business practices are ethical or not.
L4M4 PDF/Engine
Printable Format
Value of Money
100% Pass Assurance
Verified Answers
Researched by Industry Experts
Based on Real Exams Scenarios
100% Real Questions
Get 65% Discount on All Products,
Use Coupon: "ac4s65"