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Kanta Ben is the owner manager of KB Cosmetics Inc. They provide different types of make up lines for many skin types. KB Cosmetics Inc. sells their products to large retail stores in Canada and especially in Montreal, Toronto and Vancouver.
KB Cosmetics grants different credit terms to different clients.
Problem 1: Give one reason why KB Cosmetics would grant credit to its customers?
Problem 2: What are 2 possible costs for granting credit for KB Cosmetics inc.?
Problem 3: In deciding which customers will receive credit, the President of KB Cosmetics has hired Salim to do the credit analysis. He will gather information, determine credit worthiness and then report back to the President Kanta Ben. Discuss what will be involved in these two steps of gathering information and determining credit worthiness?
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