DESCRIPTIVE QUESTIONS
  1. Explain the benefits and costs of maintaining receivables.
  2. How is the term of credit optimised? Is this to do with maximisation of the corporate wealth?
  3. Mention the impact of the changes in the credit standard/period of the credit.
  4. How far do the changes in discount policy influence the credit policy?
  5. What are the sources of information on which the credit policy is based?
  6. Explain the procedure adopted for selecting a customer to whom credit facilities are provided.
  7. How is credit monitored at the customer’s level? How is credit monitored at the aggregate level?
  8. Write a note on factoring. Is it different from forfaiting?

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