Effects of Late or Non-payments/Assessment

Assessment
1. The tenets (principles) of risk assessment rely on
 * a. the customer for the most information.
 * b. gathering as many facts on the customer as possible.
 * c. your sales department for key data.
 * d. having financial statements for all customers.

2. Recognizing the “risk/reward” of international credit means
 * a. reducing outstanding receivables as much as possible.
 * b. having flexible credit policies for international customers.
 * c. knowing and apply the components of the “costs” of credit.
 * d. getting the customer to agree on the “shortest” terms possible.

3. The “Eight C's" of credit risk evaluation for the global seller provide
 * a. the sales department with necessary information.
 * b. assistance to a buyer in improving the relationship with a seller.
 * c. a simple checklist for the customers to complete.
 * d. research on the customer and the international environment.

4. The “risks and rewards” element of international credit differs from domestic or “in-country” credit decisions because
 * a. there is normally more profit available in international sales transactions.
 * b. more factors impact both risk and reward in the international scene.
 * c. there is normally more pressure from sales to sell internationally.
 * d. financial statements on international customers are, by nature, more comprehensive than those of domestic customers.

(Correct answers: 1=b, 2=c, 3=d, 4=b.)