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 WEB EXERCISES FOR DISCERNING FINANCE STUDENTS 

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PART IV: WORKING CAPITAL MANAGEMENT
Chapter 10: Accounts Receivable and Inventory Management
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 Exercise 10.1 The Many "C's of Credit"

A visit to Dun & Bradstreet Information Services will lead you to some helpful business tips. In "How to Make Better Credit Decisions" Dun & Bradstreet (D&B) discusses how the "Four C's of Credit" can be used as credit guidelines. Your textbook discusses the original "Three C's" of credit analysis.
http://www.dnb.com
https://www.dnb.com/credit/hcredit.htm

Q. What are the original "Three C's" of credit analysis? What is D&B's "fourth C" of credit analysis and why is it important to credit analysis?

 

 

 

 Exercise 10.2  Credit-Scoring Systems

"Credit Scoring" is yet another business tip from Dun & Bradstreet Information Services.
https://www.dnb.com/credit/hcredit3.htm
http://www.dnb.com

Q. Why might a firm using a credit-scoring model want to combine the credit score with a financial capacity indicator, such as "net worth?"

 

 

 Exercise 10.3 Kanban, Kaizen, and Just-in-Time (JIT)

Read Kanban: An Integrated JIT System.
http://www.msc-inc.net/Documents/Kanban_Integrated_JIT_System.htm

Q. In your own words, what is meant by the terms"Kanban," and "Kaizen?" How might cultural barriers hinder the implementation of "Kanban?"

 

 


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