The major topic in this module is making credit decisions. The reading assignment is chapters 1, 2, and 3 in Making Sound Credit Policy Decisions by Frederick C. Scherr. (This text is included in your registration.) Topics covered include: credit policy and the goals of the firm; costs that are affected by credit decisions; methods for evaluating the costs and benefits of credit decisions; determinants of credit investigation policy; credit-granting decisions in a marginal cost framework; how to estimate credit-based costs; the effects of uncertainty on credit-granting decisions; and factors that determine whether credit-granting should be based on long-term or short-term creditworthiness. The case problem for this module is The Case of the Meritorious Molder, a case in credit-granting decisions, which is at the end of Chapter 3.
Dr. Frederick C. Scherr is a Professor Emeritus of Finance at the College of Business and Economics at West Virginia University, where he taught for 30 years and won both the College’s Outstanding Teacher and Outstanding Researcher awards. He is the author of more than 30 research articles, four textbooks, and many articles in professional publications such as The Credit and Financial Management Review, The Credit Manager, and Business Credit. He has done extensive work in adult education for the National Association of Credit Management, including teaching at the Graduate School of Credit and Financial Management, and for private corporations.