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Analysis of Financial Ratios: Ratios are computed to find out the customer's liquidity position and capability to repay debts. The computed ratios must be compared along with the industry average and the nearest competitors.
Analysis of Business and its Management: Besides analyzing the basic strength of the customers business the firm must also consider in consideration the nature of the customer business and the quality of the management. Some business is inherently risky and granting credit to those customers may prove risky.
Examples
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case study on payroll system
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Analysis Various business decisions have recurrent themes: whether to the outsource production or to the support functions, what level of production and pricing to establish, w
Strengths and weakness of net book value and pay back method
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#queComputing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes
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