1. Look back at the discussion of credit decisions with repeat orders. If p 1 _ .8, what is the minimum level of p 2 at which Cast Iron is justified in extending credit?
2. True or False?
a. Exporters who require greater certainty of payment arrange for the customers to sign a bill of lading in exchange for a sight draft.
b. It makes sense to monitor the credit manager’s performance by looking at the proportion of bad debts.
c. If a customer refuses to pay despite repeated reminders, the company usually turns the debt over to a factor or an attorney.
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