A Customer's Credit Is Checked Before Checking Availability of Goods

question 37

Multiple Choice

A customer's credit is checked before checking availability of goods in order to ________.

• A) increase the rate of credit approval of customers
• B) arrange for the special terms requested
• C) prevent the wastage of shipping-verification labor
• D) align the processes with organizational goals

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Definitions:

Working Capital Management

The process of managing a company's short-term assets and liabilities to ensure it has sufficient liquidity to run its day-to-day operations.

Cash Requirements

Cash requirements refer to the total amount of cash a company needs to satisfy its operational expenses and financial obligations in a given period.

Long-Term Debt

Loans and financial obligations lasting more than one year, used as a means for business financing.

Corporate Ownership

Refers to the ownership of shares in a corporation, which represents claims on the corporation's assets and earnings.