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Evaluation of Credit Management in the Manufacturing Company

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Evaluation of Credit Management in the Manufacturing Company

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  • May 14, 2010
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Page 1 of 34
TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
Table of Content

CHAPTER ONE
1.0Introduction
1.1Background of the Study
1.2Purpose of the Study
1.3Scope and Limitation of the Study
1.4Significance of the Study
1.5Definition of Terms

CHAPTER TWO
2.0Literature Review
2.1Development of Credit in Business Management
2.2Importance of Trade Credit
2.3Review of the Related Topic
2.4Legal Consideration for Effectiveness of Credit Control and Management 2.5Consideration for Effectiveness of Credit Control and Management 2.6Credit Determination Factors
2.7Credit Costs
2.8Risk Evaluation
2.9Determination of Credit Limits
2.10Collection Procedure
2.3.0Appraisal of the Efficacy of Credit Control and Managements

CHAPTER THREE
3.0Research Methodology
3.1Historical Background of the case Study
3.2The Research Design
3.3Method of Data Collection

CHAPTER FOUR
4.0Data Presentation
4.1Data Interpretation
4.2Data Analysis
4.3The Data Collection Procedure
CHAPTER FIVE
5.0Summary and Observation
5.1Conclusion
5.2Recommendation

CHAPTER ONE

1.0INTRODUCTION
A manufacturing company is a company that is engaged in the transformation and conversion of raw materials (inputs) into finished product known as outputs.
Economics wise, manufacturing could be said to be the second stage of production. Therefore, a manufacturing company turns raw materials or an input into finished goods, mostly with the objectives of maximizing profits.

For the objective of any manufacturing company to be realized, goods produced will have to be sold out for the consumption of the people. This is done in mist cases through sales on credit (trade credit) or sales con cash basis (cash sales)

Trade credit can be defined as the buying and selling of goods and services in which payment is postponed to a future date according to the agreement between the buyers and the sellers. Therefore, it can be looked at in...