chapter 17 - Chapter 17 Mike Solomich 1/28/09 1. The...

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Chapter 17 Mike Solomich 1/28/09 1. The purpose of a business credit department serves to analyze, make decisions, and make credit lines for a business. The efforts of the department are important because if they give bad credit lines, the business could go bankrupt and make a lot of bad debt. 2. Alternatives to approving the order or applicant as presented do exist. A new applicant may be approved, but for similar initial order. Perhaps additional security will be sought, such as a personal guarantee from the major stockholders of the corporation. An existing client may be required to pay the account down to a certain point before more orders are approved. Also, the terms of sale offered may be more restrictive than normal, requiring earlier payment. Sometimes a maybe is implied when a new applicant is turned down, but invited to apply again within a certain period of time. 3. The goals that are important in making business credit decisions are making valid decisions, speed and efficiency, consistency, reasonable decision and adherence to credit laws. The majority of approved orders and customers must pay their
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This note was uploaded on 11/15/2009 for the course ENG 401 taught by Professor Mess during the Spring '09 term at Northwood University, Michigan Campus.

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chapter 17 - Chapter 17 Mike Solomich 1/28/09 1. The...

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