A firm will likely be rejected for credit due to concerns about its _____________ if its financial reserves
are considered to be lacking.
E. economic condition
A firm has inadequate ____________ if it does not have sufficient assets to pledge in the case of default.
As a result it will likely be rejected for credit.
A firm will likely be turned down for credit due to concerns about its ___________ if there are signs that
the firm's industry is in general decline.
Of a firm's five Cs of credit, which is LEAST likely to be managed directly by the firm?
A typical first step in the collection of an overdue account is to ________________ .
A. employ a collection agency
B. send the customer an aging schedule
C. make a telephone call to the customer
D. take legal action against the customer
E. call the customer's bank
SunSign Foods, a retail grocery store, is determining how much inventory to keep on hand. Which of the
following types of inventory does it probably need to consider?
I. Raw materials
III. Finished goods
An automobile tire would be considered _________ inventory to an automobile manufacturer and
______________ inventory to a tire manufacturer.