Trade receivebales — OpenTuition Forums

XXX-XOXO13y ago

Hi John,
Can u please tell me the deference between these two questions. To mee it seems both of the questions are same, but the examiners answers are very different and both are for 8 marks

June 2010- ZSE CO
Identify and discuss the factors to be considered in formulating a trade receivables management policy for ZSC Co.

December 2010 -WQZcCo
Discuss the factors that should be considered in formulating working capital policy on the management of trade receivables.

Many thanks

John MoffatTutor13y ago#1

In June 2010 you were asked for comments about receivables management specific for ZSC Co.

In December 2010 you were asked to comment on receivables management in general.

However in both cases they are only suggested answers and you would not be expected to make all the points - the more points you make the better, so learn from both answers.

XXX-XOXO13y ago#2

He repeated December 2010 question again for 8 marks. Thank you very much for the help John.

John MoffatTutor13y ago#3

You are welcome :)

Nnosiku13y ago#4

Hi, so what are the general policies to adopt on receivables management. Am doing self study kindly be of help in explaining.

John MoffatTutor13y ago#5

There is too much to type here! Have you read our Course Notes and watched my lectures on here?

Nnosiku13y ago#6

I have only read the course notes. Do the following qualify? -reveiwing credit limits for customers, -assing financial statement for customers -if need be using factoring to collect debt( when you have tried collecting and you have failed) -employing expatriate staff to manage receivables -etc This is what I understood from the course notes.

John MoffatTutor13y ago#7

Yes - those are all things one would consider when formulating a policy for managing receivables. (why expatriate staff though? :-) )

Nnosiku13y ago#8

Mostly they are good at the job given to them, hence you will expect quality results from there input. On the other hand explain to me in detail the following approaches that an organisation can adopt in terms of inventory -agressive -moderate -conservative

John MoffatTutor13y ago#9

I am not sure I agree with you with regard to ex-pat staff - some are good and some or not. Same with local staff :-) Agressive, conservative, moderate are approaches to the way that an organisation finances its working capital (not their inventory policy). Aggressive is where they finance primarily with short-term finance; conservative is where they finance primarily with long-term finance. Have you watched my lectures on working capital?

Nnosiku13y ago#10

Thank you.

John MoffatTutor13y ago#11

You are welcome