Investments, Corp. Finance and Financial Markets Essay - 1

Investments, Corp. Finance and Financial Markets - Essay Example This has adverse effects on the financial institution such as insolvency and therefore banks employ the 5 C’s of Credit Scoring to evaluate whether or not a person should be entitled to a loan. The 5 C’s are based on the characteristics of the borrower and are explained in detail as follows. Character- The bank seeks basic information from the borrower such as his trustworthiness, integrity, work, reputation based on previous history with lenders, any defaults. Some of this information could be accessed easily through credit reports. A credit report is a report generated by the Credit Reference Bureau detailing information on a person’s credit history including identifying information, credit accounts and loans, bankruptcies, late payments and enquiries. Because credit history shall make up the biggest percentage of a borrower’s eventual credit score, it makes sense that he focuses his attention on that factor. This helps evaluate whether he is credit worthy. Capital- The borrower’s equity or net worth is checked in comparison to the amount he so wishes to borrow. If the capital invested is way below the amount borrowed, then that could raise red flags in his ability to repay the loan. Capacity- The borrower is gauged on his sufficiency of yielding positive cash flows during the loan repayment period and the amount is pre-calculated using different analysis criteria such as the Net Present Value, Profitability Index. If he passes this stage, he has to provide a credible plan on his willingness to repay his loan when it’s due. Conditions- Economic conditions dictate whether a loan should be granted to a borrower. For instance, in periods of economic recovery or boom, it is safe for a borrower to be granted a loan because chances of him defaulting are minimal. However, in the recession period, it’s most likely that the borrower will not be in a position to fully settle his obligations and therefore banks

The process of measuring and comparing service utilization Essay

The process of measuring and comparing service utilization - Essay Example The findings of the research indicate that most community mental health programs do not possess the relevant resources to build or buy the types of systems that would help to record notes about clients and the activities that they participate in (Dewa, Horgan, Russell & Keates, 2001). This means that it was difficult to have timely, consistent and accessible information for all community support and services which make it difficult to conduct the evaluations. The research does not provide adequate statistical data. Instead, most of the data provided is descriptive. Nevertheless, the findings have practical significance because of the value it has for program evaluation purposes and administrative purposes in terms of making key decisions on prioritization, planning and staffing needs (Dewa, Horgan, Russell & Keates, 2001).The authors considered all the relevant studies in the sense that they included information from previous researches and contributions from different authors in to the study in form of a background study. The consideration of the studies helped the researchers gain an understanding of the current states of affairs as they relate to the topic of study pointing out that most studies have not given it importance. The authors have discussed all the relevant limitations because they included a section on the challenges that they encountered and a table showing this. The conclusions are justified based on the results presented because the authors provide a conclusion.