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Unit 12: Receivables Management

6. Why are the risks involved in international credit management more complex than those Notes
associated are true or false with purely domestic credit sales?
7. Analyse the benefit of the receivables management to the corporates.
8. Elucidate the consequences of liberal versus stiff credit standards.

9. Examine the different sources of credit information to the corporates & to the agencies.
10. Examine the factors that influence the size of investment in receivables.
Answers: Self Assessment

1. Delinquency 2. Collection cost 3. stringent
4. marginal 5. credit standards 6. bad debt
7. Credit period 8. higher 9. sales invoices
10. factoring 11. higher 12. weakness.
13. exchange rate 14. option 15. acceptable collection

12.8 Further Readings

Books Dr Pradeep Kumar Sinha, Financial Management, New Delhi, Excel Books, 2009.
Van Horne, J.C. and Wachowicz, Jr, J.M., Fundamentals of Financial Management,
New Delhi, Prentice Hall of India Pvt. Ltd., 1996, p. 2.

Chandra, P., Financial Management - Theory and Practice, New Delhi, Tata McGraw
Hill Publishing Company Ltd., 2002, p. 3.

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