3.7 Decision-making (Credit Worthiness of Customers) by Carol Chua https://padlet.com/carolchua/37TRdecision en-us 2020-08-22 19:52:44 UTC 2025-10-23 05:25:11 UTC hello@padlet.com Decision carolchua https://padlet.com/carolchua/37TRdecision/wish/693016456 I will grant the credit extension to ... ...]]> 2020-08-22 19:52:44 UTC https://padlet.com/carolchua/37TRdecision/wish/693016456 REASON 1 carolchua https://padlet.com/carolchua/37TRdecision/wish/693016457 - Evidence from the question
Customer A has been paying up within 35 days, which is 5 days earlier than Customer B.

- Explain why the evidence supports your decision
Customer A is more prompt in payment and the business can have cash earlier for daily operations (e.g. it can pay use the cash to pay its credit suppliers, pay rent, utilities, salaries etc).
]]> 2020-08-22 19:52:44 UTC https://padlet.com/carolchua/37TRdecision/wish/693016457 REASON 2 carolchua https://padlet.com/carolchua/37TRdecision/wish/693016458 - Evidence from the question

- Explain why the evidence supports your decision 
]]> 2020-08-22 19:52:44 UTC https://padlet.com/carolchua/37TRdecision/wish/693016458 decison https://padlet.com/carolchua/37TRdecision/wish/704420333 i will grant credit extention to customer b. ]]> 2020-08-28 05:01:49 UTC https://padlet.com/carolchua/37TRdecision/wish/704420333 Decision: https://padlet.com/carolchua/37TRdecision/wish/704420400 i will grant the extension to customer A.]]> 2020-08-28 05:01:54 UTC https://padlet.com/carolchua/37TRdecision/wish/704420400 decision https://padlet.com/carolchua/37TRdecision/wish/704420438 i will grant the credit extension to customer a]]> 2020-08-28 05:01:56 UTC https://padlet.com/carolchua/37TRdecision/wish/704420438 https://padlet.com/carolchua/37TRdecision/wish/704420488 I will grant the credit extension to customer B.]]> 2020-08-28 05:01:59 UTC https://padlet.com/carolchua/37TRdecision/wish/704420488 Reason 1: https://padlet.com/carolchua/37TRdecision/wish/704420913 Evidence form the question:
A owes $8000 while B owes $15000.

Explain why the evidence supports:
Since A owes lesser money to the business, it is easier for them to pay the business back. Even if customer A is not able to pay the business back, the business will not lose as much money compared to B.]]> 2020-08-28 05:02:28 UTC https://padlet.com/carolchua/37TRdecision/wish/704420913 reason 1 https://padlet.com/carolchua/37TRdecision/wish/704421373 the mean amount owed to the business for customer A is $7000 lesser than customer B.If customer A has a potential to not pay up, the business will incur a smaller loss in sales revenue.]]> 2020-08-28 05:02:56 UTC https://padlet.com/carolchua/37TRdecision/wish/704421373 https://padlet.com/carolchua/37TRdecision/wish/704421503 I will grant the credit extension to customer B]]> 2020-08-28 05:03:04 UTC https://padlet.com/carolchua/37TRdecision/wish/704421503 reason 1 https://padlet.com/carolchua/37TRdecision/wish/704421553 evidence from qn
business has a 10 year relationship with customer b; customer b's business is well known in the industry
explanation:
business trusts customer b; customer b has a well known business; has money to pay up]]> 2020-08-28 05:03:07 UTC https://padlet.com/carolchua/37TRdecision/wish/704421553 Reason 1 https://padlet.com/carolchua/37TRdecision/wish/704421669 Evidence from the question :
The amount of money the business earns from selling goods to customer B is $250,000, while the amount of money earned when business sells goods to customer A is $120000.

Explanation :
The business can earn more sales revenue from selling goods to customer B. 

]]> 2020-08-28 05:03:14 UTC https://padlet.com/carolchua/37TRdecision/wish/704421669 I would grant the extension to customer B https://padlet.com/carolchua/37TRdecision/wish/704421670 2020-08-28 05:03:14 UTC https://padlet.com/carolchua/37TRdecision/wish/704421670 Reason 1 https://padlet.com/carolchua/37TRdecision/wish/704421898 Evidence: customer B is not planing to spend a lot of money within3 the next year because they do not plan to expand overseas.

Explanation: Customer B has less expenses incurring, hence they are more likely to be able to pay the amount owing on time or earlier.  ]]> 2020-08-28 05:03:28 UTC https://padlet.com/carolchua/37TRdecision/wish/704421898 reason 1 https://padlet.com/carolchua/37TRdecision/wish/704423008 evidence from the question: 
lim trading has been dealing with customer B for a longer period of time than customer A 
Customer B has good reviews and has build a stable business foundation throughout the years

explanation:
since lim trading and customer B has more corporate dealings, they have a better relationship and they have built trust between each other.
since customer B is an avant-garde entrepreneur of computer products, they will have a more stable source of income and better customer connections]]> 2020-08-28 05:04:24 UTC https://padlet.com/carolchua/37TRdecision/wish/704423008 reason 2 https://padlet.com/carolchua/37TRdecision/wish/704424189 Customer A would earn more from their increased sales revenue from expansion.With further advancements of customer A's business overseas, customer A will be able to generate more income and hence, would be able to pay up to the business more quickly for daily operations.]]> 2020-08-28 05:05:38 UTC https://padlet.com/carolchua/37TRdecision/wish/704424189 reason 2 https://padlet.com/carolchua/37TRdecision/wish/704426601 evidence:
customer b is popular amongst people; sells quality goods and provides additional warranty

explanation:
customer b would be receiving a decent income as people often go to customer b to buy goods. with the income they earn, customer b is able to pay up.]]> 2020-08-28 05:08:32 UTC https://padlet.com/carolchua/37TRdecision/wish/704426601 Reason 2 https://padlet.com/carolchua/37TRdecision/wish/704426823 Evidence: Customer B has customer feedback to refer to.

Explanation: Business has a reference to see whether customer B is trustworthy or not.]]> 2020-08-28 05:08:47 UTC https://padlet.com/carolchua/37TRdecision/wish/704426823 Reason 2: https://padlet.com/carolchua/37TRdecision/wish/704427949 Evidence from question:
A wants to promote his business  overseas which can increase their profit by 2 times.

Explanation:
With customer A moving overseas , A might buy more supplies from Lim Trading increasing the business' sales revenue]]> 2020-08-28 05:10:12 UTC https://padlet.com/carolchua/37TRdecision/wish/704427949 reason 3 https://padlet.com/carolchua/37TRdecision/wish/704429061 Although customer A faced a few incidents where there were  slip-ups in their cheques, they were able to come up with a solution to rectify the problem by hiring a senior staff.Customer A has ensured the cheques given to the business are properly written by getting a senior accountant to check of use by hiring multiple accountants to check.Thus, there should not be anymore dishonoured cheques from customer A and business will have more cash for daily operations.]]> 2020-08-28 05:11:26 UTC https://padlet.com/carolchua/37TRdecision/wish/704429061 Reason 3: https://padlet.com/carolchua/37TRdecision/wish/704430507 Evidence from the question:
A only had a few problems and are trying to fix the problem by hiring a supervisor for the accountant, to ensure that there are no rejected payments.

Explanation :
After a while, A will be able to sort out their issues and continue to pay back Lim Trading as the dishonoured cheques were because of the inexperienced staff member. Since they have a senior to guide the accountant, payments will be made promptly.]]> 2020-08-28 05:13:06 UTC https://padlet.com/carolchua/37TRdecision/wish/704430507 Reason 2 https://padlet.com/carolchua/37TRdecision/wish/704431059 Evidence from the question :
Customer B is a long term customer who has been purchasing goods from the business for the past 10 years. Customer A only started buying goods from the business a year ago. 

Explanation : 
The business has established trust with customer B and has built a strong bond with the customer.

]]> 2020-08-28 05:13:45 UTC https://padlet.com/carolchua/37TRdecision/wish/704431059 reason 3 https://padlet.com/carolchua/37TRdecision/wish/704431955 evidence:
customer b does not plan to expand its business into other countries
explanation:
customer b has more cash to pay back business, as no additional expenses will be incurred in the expansion process. Hence, Lim Tradng is more likely to receive payment from customer b on time.]]> 2020-08-28 05:14:51 UTC https://padlet.com/carolchua/37TRdecision/wish/704431955 reason 2 https://padlet.com/carolchua/37TRdecision/wish/704434219 evidence from qn
they have a stable foundation and they dont intend to broaden their business in the long-term

explanation: 
there is less risk to take by the business and there will be a stable flow of income with prompt payment to lim trading]]> 2020-08-28 05:17:34 UTC https://padlet.com/carolchua/37TRdecision/wish/704434219 reason 3 https://padlet.com/carolchua/37TRdecision/wish/704437050 evidence from qns
Customer B is famous in their industry from providing excellent services and exceptional products

explanation:
Customer B earns their customers' trust through their high-grade products and outstanding services, this improves connections and makes them a more trust-worthy and reliable customer/business]]> 2020-08-28 05:20:59 UTC https://padlet.com/carolchua/37TRdecision/wish/704437050 Reason 3 https://padlet.com/carolchua/37TRdecision/wish/704437874 Evidence from the question :
Customer B is well-known and has positive feedback from their own customers , while customer A has no feedback at all.

Explanation:
Customer B would have higher potential of making prompt payment, as they are able to earn income easily.]]> 2020-08-28 05:21:54 UTC https://padlet.com/carolchua/37TRdecision/wish/704437874 Reason 3 https://padlet.com/carolchua/37TRdecision/wish/704438455 Evidence: Customer B has been purchasing goods from the business for 10 years.

Explanation: Customer B is a well-known customer to the business. They have been paying back promptly for the past ten years and they are credible.]]> 2020-08-28 05:22:37 UTC https://padlet.com/carolchua/37TRdecision/wish/704438455