Explore BrainMass
Share

Discuss the rationale behind a liberalization of credit poli

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Discuss the rationale behind a liberalization of credit policy and its effect on sales and accounts receivable, in particular any associated financing impacts. What organizations have been in the news due to their poor credit ratings, and how has that affected their business?

© BrainMass Inc. brainmass.com October 17, 2018, 3:05 am ad1c9bdddf
https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/discuss-the-rationale-behind-a-liberalization-of-credit-poli-408205

Solution Preview

Discuss the rationale behind a liberalization of credit policy and its effect on sales and accounts receivable, in particular any associated financing impacts. What organizations have been in the news due to their poor credit ratings, and how has that affected their business?

Solution:

Discuss the rationale behind a liberalization of credit policy and its effect on sales and accounts receivable, in particular any associated financing impacts.

When a company initiates a liberal credit policy, they do so under the premise that it will increase sales. A liberal policy does increase sales, and it also increases accounts receivable. The company is now extending their credit terms, giving customers a longer period of time to pay, and extending credit to customers on a more lenient basis, including customers who before would have been denied credit due to the non-lenient credit policies. A new business almost always has to have a liberal credit policy, in order to gain customers. If credit is ...

Solution Summary

Discuss the rationale behind a liberalization of credit policy and its effect on sales and accounts receivable, in particular any associated financing impacts. What organizations have been in the news due to their poor credit ratings, and how has that affected their business?

$2.19
Similar Posting

Business ethics and social responsibility, global business, strategies, trade, WTO

Discuss the basic forms of conducting international business (export/import, licensing/franchising, contract manufacturing/outsourcing, joint ventures/alliances, and direct investment), and basic international business strategies (multinternational vs global)

Discuss the trade (economic reason why trade occurs,) the role of the World Trade Organization, regional trade agreements, and the barriers to international trade

Discuss the business ethics (concept, common issues, ethical decision factors), actions to promote ethical behavior, social responsibility (concept/dimensions, consumerism), and the business legal environment (source of law, resolution of disputes)

Plus references.

View Full Posting Details