The Primary Determinants of Credit Limits Include the Following

question 5

Multiple Choice

The primary determinants of credit limits include the following:

• A)Customer's requirements for the firm's products
• B)Customer's recent payment history
• C)Customer's ability to pay its debts
• D)'b' and 'c'
• E)all of the above

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Definitions:

Stock Ownership

Holding shares in a company, which represent a portion of the company's capital and give certain rights to the shareholder.

Voting Rights

The ability of shareholders to vote on corporate matters, such as the election of the board of directors.

Management Control

Refers to the processes, policies, and procedures that are put in place by an organization's management to ensure that its goals and objectives are achieved efficiently and effectively.

Unethical Behaviour

Actions or practices that breach moral or professional conduct codes.