Name and explain three reasons credit terms are offered.
What is Increase Sales, Competition, Promotion, Credit Availability, Convenience, Demand and/or Price
100
The activities of those engaged in the purchase of sale of commodities, or in related transactions
What is Business?
100
Credit departments controlled at a headquarters but administered locally are
What is Decentralized?
100
Communication, Collaboration and Cooperation
What are the three "C"s of the credit-sales relationship?
100
Planning, organizing, staffing, leadership and control are all
What are Management Responsibilities?
200
The period of time between the acquisition of material, labor and overhead inputs for production and the collection of sales receipts
What is Operating Cycle?
200
A check collection system operated by a bank
What is a Lockbox?
200
A guiding principle used to establish direction for the credit function in an organization in order to achieve the objectives of minimizing risk and maximizing profitability while maintaining a competitive advantage in the marketplace
What is a Credit Policy?
200
Sales staff can be assured they are spending time wisely by
What is requesting a preliminary credit investigation?
200
External events, occurrences, phenomena and factors that may interrupt or otherwise disturb the normal flow of business
What are Conditions?
300
Credit extended to or used by governments or governmental divisions, agencies or instrumentalities.
What is Public Credit?
300
The efficient management and use of cash in a manner that is consistent with the strategic objectives of the business
What is Cash Management?
300
A statement of the qualifications that an individual should have to fill a particular job
What is a Job specification?
300
Higher profit margin on a sale or account should result in
What is Greater Risk Assumption?
300
The only group other than sales to have substantial contact with the customer
What is the Credit Department?
400
The willingness of a debtor to pay its obligations
What is Character?
400
The excess of current assets of a business over its current liabilities
What is Working Capital?
400
This document should serve as a legally binding document to be relied upon for enforcement of certain terms and conditions
What is a Credit Application?
400
Financial analysis, cash flow control, credit references and loan referrals are
What are ways that credit professionals can assist established customers?
400
Accounts with poor payment history, inadequate working capital or a deteriorating financial condition
What are Marginal Accounts?
500
The portion of a member bank's deposits that it must hold in its own vaults or on deposit at its regional Reserve bank.
What is the reserve requirement?
500
Customer and credit analysis, developing credit policy, managing collections, setting credit availability thresholds and reporting to management
What are the Core Activities of a Credit Department?
500
The primary objective of is to provide employees with the opportunity to progress to whatever level of responsibility they can achieve
What is a Training Program?
500
Maximizing company profits, strengthening cash flow and providing customer service are
What is the common goal of credit and sales?
500
Letters of credit, UCC filings, liens and guarantees are all