Credit management - Quiz
  • 1. How many main groups of credit managers are identified based on legal and jurisdictional knowledge?
A) Two
B) Four
C) Three
D) Five
  • 2. Which of the following is identified as a specific type of credit manager in the text?
A) International credit manager
B) Construction credit manager
C) Retail credit manager
D) Corporate credit manager
  • 3. What is considered a specialist area of credit management requiring specific skills?
A) Consumer credit management
B) Construction credit management
C) Retail credit management
D) Commercial credit management
  • 4. What kind of legal knowledge is required for a construction credit manager?
A) International trade law
B) Bankruptcy litigation law
C) Security and lien law
D) Consumer protection law
  • 5. Which professional organization serves credit managers in Australia?
A) National Association of Credit Management
B) Credit Institute of Canada
C) Australian Institute of Credit Management
D) Chartered Institute of Credit Management
  • 6. What is the official designation for credit professionals in Canada?
A) Certified Credit Business Associate
B) Certified Credit Professional
C) Fellow Credit Institute
D) Chartered Credit Executive
  • 7. What was the former name of the Certified Credit Professional designation in Canada?
A) Certified Credit Manager
B) Credit Institute Fellow
C) Fellow Credit Institute
D) Chartered Credit Professional
  • 8. What is the name of the French association for credit managers?
A) Australian Institute of Credit Management
B) Chartered Institute of Credit Management
C) National Association of Credit Management
D) Association Française des Credit Managers
  • 9. When did the Chartered Institute of Credit Management in the UK receive its Royal Charter?
A) 1 January 2005
B) 1 January 2010
C) 1 January 2020
D) 1 January 2015
  • 10. Which organization provides certification for credit managers in the United States?
A) National Association of Credit Management
B) Credit Institute of Canada
C) Chartered Institute of Credit Management
D) Australian Institute of Credit Management
  • 11. Which of the following is a certification level offered by the National Association of Credit Management?
A) Certified Credit Professional
B) Certified Credit Executive
C) Chartered Credit Manager
D) Fellow Credit Institute
  • 12. Besides lien law, what other ability is essential for construction credit managers?
A) Calculating material waste
B) Creating architectural designs
C) Negotiating union contracts
D) Understanding the construction pyramid
  • 13. In the construction industry, who might a credit manager need to deal with?
A) Both white and blue collar staff
B) Only executive management
C) Only government inspectors
D) Only site laborers
  • 14. What practical activity might a construction credit manager be expected to perform?
A) Site visits
B) Equipment maintenance
C) Architectural drafting
D) Safety inspections
  • 15. Which group of credit managers is NOT specifically mentioned as one of the three main types?
A) Government credit managers
B) Commercial credit managers
C) Construction credit managers
D) Consumer credit managers
  • 16. What is a common method for measuring cash flow efficiency?
A) Price-to-earnings ratio
B) Earnings before interest and taxes (EBIT)
C) Days sales outstanding (DSO)
D) Return on investment (ROI)
  • 17. What happens when a company uses a structured credit policy?
A) It forces customers to pay in cash
B) It increases legal expenses
C) It reduces the need for credit managers
D) It creates an audit trail
  • 18. What is a responsibility of a credit manager regarding delinquent customers?
A) Approving new sales orders
B) Offering additional credit
C) Initiating legal or recovery actions
D) Ignoring payment delays
  • 19. Which of the following is an example of a security interest?
A) Credit rating criteria
B) Bad debt write-offs
C) Employee bonuses
D) Personal guarantees
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