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Corporate failure
Evaluation of the A score model
Advantages Disadvantages
The ability to use financial and The strengths can also be seen as
non-financial measures weaknesses:
The ability to use the The use of financial and non-
judgement of the investigator financial measures requires a
large amount of information
The judgement of the
investigator is subjective
In addition the model does not
consider:
company specific variables,
e.g. dependence on a few
suppliers
general characteristics, e.g.
industry type
external factors, e.g. interest
rates, inflation
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