It Is Better to Give Information in Small Chunks Because

question 14

Multiple Choice

It is better to give information in small chunks because people can only remember:

• A) about two pieces of information at a time.
• B) about three pieces of information at a time.
• C) about seven pieces of information at a time.
• D) information delivered in no more than a 30-second period.
• E) information delivered in no more than a one-minute period.

Understand how information about a credit applicant is obtained and utilized.

Learn the consequences of adjustments in credit and collections decisions on accounts receivable balance.

Recognize the impact of different levels of accounts receivable on financial costs and customer relations.

Grasp the components and significance of a firm's credit policy.

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Definitions:

Revolving Credit Agreement

A banking agreement that allows the borrower to withdraw, repay, and redraw loans advanced to them up to a specified amount.

Line of Credit

An arrangement between a financial institution and a customer that establishes a maximum loan balance that the borrower can access.

Maturity Matching Principle

A financial management strategy that involves matching the duration of assets with the duration of liabilities, to manage risk and ensure funding adequacy over time.

Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.