Describe the five cs of credit used in evaluating the credit

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Describe the five Cs of credit used in evaluating the creditworthiness of a credit applicant.

Reference no: EM131121326

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Discuss an increase in interest rates : Discuss how each of the following factors would tend to affect a firm’s credit extension policies: a. A shortage of working capital b. An increase in output to the point where the firm is operating at full production capacity c. An increase in the fi..
Do you agree or disagree with this statement : “The objective of the firm’s credit and collection policies should be to minimize its bad-debt losses.” Do you agree or disagree with this statement? Explain.
What credit policy variables might the firm consider change : A firm is currently selling on credit terms of “net 30,” and its accounts receivable average 30 days past due (i.e., the firm’s average collection period is 60 days).What credit policy variables might the firm consider changing to reduce its average ..
How does a firm required rate of return on investment : How does a firm’s required rate of return on investment enter into the analysis of changes in its credit and collection policies?
Describe the five cs of credit used in evaluating the credit : Describe the five Cs of credit used in evaluating the creditworthiness of a credit applicant.
Describe the three steps involved in evaluating credit : Describe the three steps involved in evaluating credit applicants.
Describe the marginal costs and benefits associated : Describe the marginal costs and benefits associated with each of the following changes in a firm's credit and collection policies: a. Increasing the credit period from 7 to 30 days b. Increasing the cash discount from 1 to 2 percent
Define average collection period and bad-debt loss ratio : Define the following terms: a. Average collection period b. Bad-debt loss ratio c. Aging of accounts
What are the major credit policy variables a firm : What are the major credit policy variables a firm can use to control its level of receivables investment?

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