an example of how the factors in a firm's credit policy might differ between relaxed and restrictive policies, and differ in affecting sales and profit.

Q: How did Office Smart increase its market share—possibly by lowering credit st

A: : Credit standards: Credit standards can be defined as a set of guidelines existing in the company…

Q: What is bank profitability? and market customer size and the concept of profitability? and…

A: Bank Profitability: Like all businesses, banks profit by earning extra money than what they pay in…

Q: Ways that banks compete for customers

A: Introduction: Banking is a highly competitive sector with virtually similar goods offered by all…

Q: Describe some ways to manage credit risk at a nonfinancialcompany

A: Evaluation of the customer prior to granting credit. Nonfinancial Company does self-evaluation or…

Q: Assume that the government sets a binding price ceiling on the interest rate that banks charge on…

A: A price ceiling is a mandate that the price charged on certain goods or products may not rise or…

Q: Discuss in detail about the Loan securitization as a tool for managing risks by banks. Discuss about…

A: Securitization : It is a risk management tool used to reduce an risk that is particular to some…

Q: A ______________ factor of credit policy effects occurs when a firm which institutes a credit policy…

A: There are different variables related to the credit policy of a company. These variables are -…

Q: What does a proper loan structure accomplish for the borrower and the lender?   A. Supports…

A: The term "loan structure" describes the range of options available to a lender when giving credit to…

Q: Define the Credit Risk and include in your discussion examples of the Credit Risk and why Financial…

A: A large number of financial transactions take place in the financial system and each transaction…

Q: Why do credit ratings change? How can these changes affect investors?

A: Credit ratings are assigned on the basis of extensive economic analysis by the credit rating…

Q: In your opinion, what is the effect of the banking sector clean up on investment decisions of…

A: Investment decisions are used to decide on the profitability of a project. So, it's important for…

Q: Does its management typically have complete control over a firm’s credit policy? As a general…

A: SOLUTION:- Management does not have complete control over a firm's credit policy as credit policy is…

Q: Are credit rating agencies reliable?

A: Credit rating Agencies rates the banks as per its past borrowing performance. These agencies measure…

Q: ring and explain its advantages and disadvantages. Why might a bank be interested in a company’s…

A: Gearing : In simple words, gearing refers to the ratio of the company debt to equity. It depicts how…

Q: Banks still make more money on investments than fees for customer-related non-credit-related fees.…

A: Investment banking:  Investment banks will also help with reorganizations, mergers, and trades for…

Q: How does extence of rivalry among competitors in the banking sector affect the investment industry…

A: The global financial crisis rekindled policymakers' and academics' interest in bank competition and…

Q: Differences and similarities of Business and Consumer Loan.

A: A loan is a financial term that indicates the borrowings of an individual or an organization. In…

Q: Why are credit rating agencies reliable/unreliable?

A: Credit Rating agencies are unreliable because of the following reasons: 1-Ideological biases: In…

Q: What are the four elements of a firm’s credit policy? To what extent canfirms set their own credit…

A: An organization generates its revenue from sales. Sales may be cash sales or on credit. When the…

Q: How does peer to peer lending is different from traditional banking lending for Credit Mutuel Group?

A: Peer-to-peer lending is a type of crowd-funding that allows those who wish to invest to lend money…

Q: What are the four key factors in a firm's credit policy? How would an easy policy differ from a…

A: Credit Policy of the firm is the Policy firm follows in extending credit to its customers. To…

Q: How do banks assess the risk appetite of each customers in terms of choosing the right  investment

A: Investments of banks are in the form of loans they have provided. Before giving loan to any customer…

Q: heir loans in one industry so that they can specialize on that industry and reduce the credit risk…

A: Credit risk means risk of default in payment obligation by borrower.

Q: What are the disadvantages of the financial intermediaries and the negative ways they can impact the…

A: A financial intermediary is that entity that acts as a middleman in a financial transaction taking…

Q: What are the four key factors in a firm's credit policy? how would a relaxed policy differ from a…

A: Credit Policy relates to guidelines and terms of entity to facilitate credit sales that includes…

Q: Do you believe Credit Ratings Agencies face a moral hazard based on their Issuer-Par business model?…

A: Credit rating agencies are the institutions which rate the solvency status and debt burden capacity…

Q: Which type of information asymmetry explains why bad credit risks are more likely to seek bank…

A: Adverse selection, as a rule, alludes to a circumstance where dealers have data that buyers do not…

Q: discuss why financial markets should be regulated

A: Financial markets is the market which is in-fact actually not a physical market where is the goods…

Q: Define credit risk and its implications for banks and other financial institutions as well as ways…

A: Credit Risk means risk which is faced by the Banks and Financial Institutions who lend money to…

Q: How do legal considerations affect a firm’s credit policy?

A: Four elements of credit policies are as follows: 1) Cash discount 2) Credit period 3) Credit…

Q: All of the following are purposes of internal risk rating systems except: Group of answer choices…

A: Answer (C). Inadequacy of loan reserves

Q: What is credit risk? Discuss the more qualitative factors that creditors also consider in…

A: Financial Risks can be of various types such as market rate risk, credit risk, interest rate risk,…

Q: The goal of credit policy

A: The credit policy of a firm refers to the principles laid down by the firm regarding lending. The…

Q: What’s the difference between free trade credit and costly tradecredit?

A: Trade Credit is a kind of credit financing extended by the trader or supplier of goods and services…

Q: How does the uncertain nature of a firm’s sales due to COVID-19 influence its decision regarding the…

A: Explanations are given below

Q: What is trade-off credit and collection policies and its compositions?

A: A external financing is an agreement agreement understanding between partners that facilitates the…

Q: give an example of how the four factors in a firm's credit policy might differ between relaxed and…

A: The company’s credit policy consists of the following four key factors like credit period,…

Q: How does a lower credit rating affect borrowers lenders and financial institution? What are the…

A: The credit rating is a measurement of the creditworthiness of the borrower. In the capital market,…

Q: All of the following may be considered causes of the “dark side” of credit except: Group of answer…

A: Following may be considered causes of the “dark side” of credit: Operational issues that affect…

Q: Credit Ratings Agencies face a moral hazard based on their Issuer-Par business model. Why is this…

A: Credit Ratings have always faced the ethical dilemma of having to provide credit for the issuer and…