Credit Management Quiz Questions and Answers PDF Download - 21

Managers try to do their best while managing credit system of the entity. Poor management of credit system can lead to

1. embezzlement of cash in a department
2. loosing the valuable customers
3. High labor turnover
4. Delayed conversion of sales into cash

Current liability is a balance sheet item. Current liabilities of an organization means

1. Money to be paid to the Creditors
2. Money to be paid after one year
3. Money to be received by the organization within 12 months
4. Money to be paid by the business within 12 months

Monitoring/controlling in the organization would mean to analyze the goals, set out the priorities and figure out the activities that will be monitored to achieve the goal accordingly. A possible goal could be

1. Decreasing the level of waste products
2. Increasing the departments in the organization
3. increasing the salaries of the production staff
4. Reducing the staff in production department due to heavy losses

A manager is a person who is responsible for giving directions and to execute the plan of action whereas a leader is a person who motivates and inspires people to engage with his vision. Identify the basic leadership theories from below

1. Autocratic, Participative, Bureaucratic
2. Authoritarian, Democratic, Bureaucratic
3. Participative, Democratic, Authoritarian
4. Autocratic, Democratic, Participative

Maintaining an optimum cash level is mandatory for every organization but it varies from one organization to other. The reason could be

1. Size of the entity, reasons behind holding cash and time
2. Availability of cash, assets of the company and its liabilities
3. Efficiency of its employees, size of the entity and working capacity of assets
4. Time period, efficiency of operational staff and assets of the organization