Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which of the following best describes the role of credit rating agencies in supplier selection?
Which of the following best describes the role of credit rating agencies in supplier selection?
- They assess a supplier's profitability and liquidity
- They provide insights into a company's stability and growth potential
- They analyze a supplier's management and corporate strategy
- They evaluate a supplier's creditworthiness based on financial statements (correct)
What factors are considered in the business risk assessment conducted by credit rating agencies?
What factors are considered in the business risk assessment conducted by credit rating agencies?
- Management quality and strategic direction
- Market position and competitive landscape (correct)
- Customer concentration and regulatory environment
- Financial statements and profitability
What information is provided by credit rating agencies to assess a supplier's financial stability?
What information is provided by credit rating agencies to assess a supplier's financial stability?
- Credit score and risk level
- Gross margin and market position
- Profitability and liquidity analysis
- Debt to equity ratio and current ratio (correct)
Which factor is given the highest weight in determining a supplier's credit score?
Which factor is given the highest weight in determining a supplier's credit score?
Signup and view all the answers
What does a low credit score for a supplier usually indicate?
What does a low credit score for a supplier usually indicate?
Signup and view all the answers
Why is it necessary to consider the 'New Credit' aspect of a supplier's credit score?
Why is it necessary to consider the 'New Credit' aspect of a supplier's credit score?
Signup and view all the answers
What does a varied credit mix indicate about a supplier?
What does a varied credit mix indicate about a supplier?
Signup and view all the answers
