Answer to Question #189780 in Economics for Fatima

Question

1.     Discuss, with THREE examples, the robustness of the credit granting procedure in Flanco identifying any strengths and weaknesses that exist

Answer 1

A credit review process is needed to ensure that a business does not grant credit to customers who are unable to pay. The credit department handles all credit reviews. The department may receive paper copies of sales orders from the order entry department, documenting each order requested by a customer. In this manual environment, the receipt of a sales order triggers a manual review process where the credit staff can block the orders from reaching the shipping department unless it forwards an approved copy to the shipping manager.