While credit scoring provides sound credit information, it is frequently NOT used in business because
A) the scoring information is difficult to obtain.
B) scoring standards are too rigid.
C) most business transactions involve mercantile credit which cannot be scored.
D) mercantile credit decisions are easily quantifiable.

Question

Quizplus · Accepted Answer

Business transactions often involve mercantile credit, which involves extending credit to a customer for the purchase of goods and services. This type of credit is difficult to score because it is based on the customer's past payment history and unique industry-specific factors. Therefore, credit scoring is typically not used in business transactions involving mercantile credit.

While Credit Scoring Provides Sound Credit Information, It Is Frequently