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Miguel Had Just Been Promoted to Director of Accounts Receivable

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Essay

Miguel had just been promoted to Director of Accounts Receivable in the accounting department of TPC Corporation.His first responsibility was to develop and explain a better system for estimating and writing off bad debts.Without referring to the technical aspects of those tasks, discuss four things Miguel should do based on Bell's characteristics of a professional.


Definitions:

Bid Price

The highest price a buyer is willing to pay for an asset in the financial markets.

Dealer

An individual or firm in the financial markets that stands ready to buy or sell securities for their own account, at their own risk.

Security

A financial instrument that represents an ownership position in a publicly-traded corporation (stock), a creditor relationship with governmental body or a corporation (bond), or rights to ownership as represented by an option.

Income Bonds

Bonds that pay interest only when the issuer has sufficient earnings, making them riskier than regular bonds that guarantee interest payments.

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