Shaw Ltd has received a large order from its long-established and valued South African customer Norden Ply, who has always paid on time in the past. Shaw Ltd is concerned however that, as a consequence of political upheaval in the region, there is a small chance that Norden Pty may fail to pay within six months of the goods being shipped What is the most appropriate action for Shaw Ltd to take? A. Refuse to accept the order B. Approach a debt factor C. Take out export credit insurance D. Demand cash on delivery
Shaw Ltd has received a large order from its long-established and valued South African customer Norden Ply, who has always paid on time in the past. Shaw Ltd is concerned however that, as a consequence of political upheaval in the region, there is a small chance that Norden Pty may fail to pay within six months of the goods being shipped What is the most appropriate action for Shaw Ltd to take? A. Refuse to accept the order B. Approach a debt factor C. Take out export credit insurance D. Demand cash on delivery
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Shaw Ltd has received a large order from its long-established and valued South African customer Norden Ply, who has always paid on time in the past. Shaw Ltd is concerned however that, as a consequence of political upheaval in the region, there is a small chance that Norden Pty may fail to pay within six months of the goods being shipped
What is the most appropriate action for Shaw Ltd to take?
A. Refuse to accept the order
B. Approach a debt factor
C. Take out export credit insurance
D. Demand cash on delivery
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education