Why Is a Customer's Credit Checked Before Checking Availability of Goods

question 27

Multiple Choice

Why is a customer's credit checked before checking availability of goods?

• A)for the smooth working of the process
• B)for arranging the special terms
• C)to prevent the wastage of shipping-verification labor
• D)to align the processes with organizational goals

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Definitions:

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment's cost.

Coupon Rate

The rate of interest on a bond paid yearly, illustrated as a fraction of its par value.

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value. For bonds, it typically represents the amount to be repaid at maturity.

Annual Interest

The percentage of a sum of money charged for its use over a year.