BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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prior record of payment
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financial stability
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terms of credit
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current net worth
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Detailed explanation-1: -In establishing credit standards, the firm must consider the nature of the credit risk based on all of the following, except: prior record of payment.
Detailed explanation-2: -The pitfalls of poor credit management Without the working capital to invest in the business and settle with their own creditors, a business can quickly spiral into debt. It’s not just the slow payers that can impact on the cash flow of your business. Fraudsters will take any opportunity to exploit the offer of credit.
Detailed explanation-3: -Credit management is the process of monitoring and collecting payments from customers. A good credit management system minimizes the amount of capital tied up with debtors. It is very important to have good credit management for efficient cash flow.
Detailed explanation-4: -The field of finance is closely related to the fields of: statistics and economics.