6. Which of the following is a credit transaction?

a. Sale of goods by credit card

b. Delivery of goods to customer for cash

c. Purchase of a fixed asset that requires three equal instalments

7. ______ is the component of credit process relates to deferred payment.

a. Risk

b. Investment

c. Finance charge

d.Time

d. Purchase of goods by cheque

8. The ultimate goal of every credit manager is to ________.

a. achieve the highest level of profitable sales

b. develop credit and collection policies

c. supervise the credit management function

d. maintain good customer relations.

9. Costs of credit are _____.

a. the operating and personnel costs

b. the operating costs and bad debts

c. the cost of setting up a credit department

d. the cost of losing the customer and sales