Examlex
What are two concepts useful to management when assessing risk?
Credit Policy Effects
The impact of a company's credit policy on its cash flows, sales volume, and overall financial health, including aspects like credit terms and collection practices.
Cost Factor
A numerical or percentage factor that is applied to a base cost to determine the total cost of a project or production.
Probability of Nonpayment
The likelihood or risk that a borrower will not fulfill their payment obligations on a loan or debt.
Revenue
The total amount of money received by a company for goods sold or services provided during a specific period.
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