MONDAY: 5 December 2022. Morning Paper. Time Allowed: 3 hours.
Answer any FIVE questions. ALL questions carry equal marks. Do NOT write anything on this paper.
QUESTION ONE
1. Describe the term “trade credit”. (2 marks)
Outline FOUR features of trade credit. (4 marks)
2. Explain the meaning of instalment loan. (2 marks)
Summarise THREE benefits of instalment loans to a consumer. (6 marks)
3. Explain THREE types of factoring. (6 marks)
(Total: 20 marks)
QUESTION TWO
1. Enumerate SIX tools used by skip tracers to locate runaway debtors. (6 marks)
2. List SIX roles of a credit manager in a company. (6 marks)
3. Explain FOUR factors that could influence the cost of borrowing. (8 marks)
(Total: 20 marks)
QUESTION THREE
1. State FOUR benefits of credit information sharing (CIS) to borrowers. (4 marks)
2. Assess FOUR sources of commercial risk information for businesses entering export markets. (8 marks)
3. Summarise FOUR types of information that should be incorporated in a collection letter. (8 marks)
(Total: 20 marks)
QUESTION FOUR
1. Outline SIX purposes of a credit application form. (6 marks)
2. State SIX ingredients of a computerised sales ledger system. (6 marks)
3. Explain FOUR roles of credit department in protecting investment in accounts receivable. (8 marks)
(Total: 20 marks)
QUESTION FIVE
1. Describe the term “digital lending”. (2 marks)
With reference to the digital lending regulatory framework, identify THREE prohibited debt collection practices. (6 marks)
2. State SIX issues that should be discussed in a credit and sales teams’ review meeting. (6 marks)
3. Identify THREE ways management can use accounts receivable aging report. (6 marks)
(Total: 20 marks)
QUESTION SIX
1. Highlight SIX collection practices that organisations could adopt. (6 marks)
2. List SIX benefits of trade credit insurance. (6 marks)
3. Analyse FOUR types of information included in a debtor statement of account. (8 marks)
(Total: 20 marks)
QUESTION SEVEN
1. State FOUR characteristics of an overdraft. (4 marks)
2. Outline SIX types of non-financial information used in consumer credit assessment. (6 marks)
3. Interpret the 5Cs of credit as used in risk assessment. (10 marks)
(Total: 20 marks)
