Nordic Fox Heavy Equipment Imports Heavy Machinery Used in Parts

question 37

Multiple Choice

Nordic Fox Heavy Equipment imports heavy machinery used in parts of Scandinavia above the Arctic Circle to North America.This machinery is used by municipalities to clear roads during snowstorms.John Alexander is senior regional sales manager for New England.
John goes into a meeting with the sanitation director of a large city that got slammed by a snowstorm a month previously.During the cleanup,operators of the city's plows destroyed a significant amount of city and personal property,which triggered public inquiry into the competence of the sanitation staff and director.
-Which of the following needs is John most likely to discover?

• A)A need for equipment the sanitation workers can operate more easily.
• B)A need for training on the equipment the city currently has.
• C)A need for snow to fall at a more measured rate across the length of the snowstorm.
• D)A need for an explanation of how difficult equipment can be to operate that the public will accept.
• E)A need for employees with more motivation to control the equipment they operate.

Identify the broad issues in receivables policy including criteria for credit, terms of sale, and handling of delinquent customers.

Comprehend the benefits and consequences of extending trade credit.

Understand the implications of credit policy on bad debts and accounts receivable performance (ACP).

Recognize the use of financial mechanisms to manage and optimize cash flow, like ZBAs and lockbox systems.

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Definitions:

Bond Indenture

The formal agreement between a bond issuer and bondholders, detailing the terms of the bond such as interest rates, maturity date, and other conditions.

Yield To Maturity

The total return anticipated on a bond if held until it matures, considering all interest payments made at set intervals and the principal or face value.

Bond Indenture

A legal document specifying the rights, duties, and obligations of both the issuing company and the bondholders.

Coupon Frequency

The frequency with which a bond's interest payments are made to bondholders, such as annually, semi-annually, quarterly, or monthly.