What are the five tasks involved in issuing trade credit?
What will be an ideal response?
Any firm that decides to issue trade credit must perform five tasks within the firm or hire an outside firm to do so. First, the credit risk of the customer must be assessed. Second, the terms of the credit must be determined. These terms include the length of time between the sale and the payment and any interest penalties for late payments. Third, the receivable must be financed between the production and receipt of funds from the sale. Fourth, the receivable must be collected. Fifth, the firm must bear the risk that the companies to which it extends credit will default.
Like purely domestic companies, MNCs commonly extend credit to their customers. However, the problems related to managing the company's accounts receivable are more complex for the MNC. In addition to the five tasks just mentioned, the MNC also must decide the currency of denomination of its accounts receivable.
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Neptune Ltd. has the following information available for 2011 and 2012: 2011 2012 Current assets $120,000 $ 240,000 Long-term assets 60,000 120,000 Total assets $180,000 $360,000 Converting the 2012 column into a common-size statement would show current assets as being:
A) 60 percent higher than 2011 current assets. B) 67 percent of 2012 total assets. C) 71 percent of 2011 total assets. D) 50 percent higher than 2012 long-term assets.
You can beat back information overload by
a. recognizing that not all information can be examined. b. developing an information management strategy that works for you. c. trying to recognize quality information. d. all of these choices.
Brand loyalty programs aim to gain new customers, and extend the possibilities of the brand.
a. True b. False
Which of the following considerations in selecting the right intervention strategy relates to the “principle of congruence”?
a. Matching the intervention to the data and diagnosis b. Considering client readiness for change c. Deciding where to intervene first d. Considering depth of intervention