A Credit Manager Might Want to Compare Customer Credit Limits

question 130

True/False

A credit manager might want to compare customer credit limits, sales, billing data, and payment data to determine if credit limits need to be adjusted for customers with high sales or late payments.

---

Definitions:

Good Faith

An honest intention to act without taking an unfair advantage over another party, often emphasized in contractual and negotiation contexts.

Imputed Knowledge

Information or knowledge attributed to a person, typically within a legal context, even if they were not directly aware of it.

Material Information

Information that would influence the decision-making process of a reasonable person or investor in determining a course of action.

Partnership Affairs

Refers to the internal business activities, decisions, and operations managed collectively by partners within a business partnership.