1. Credit and Insurance Chapter 18 Chapter 18 Credit and Insurance
©2008 Thomson/South-Western
Chapter 18
Credit and Insurance

2. Lesson 18.1 Credit Principles and Practices
Goals
Describe three types of credit plans used by businesses.
Identify several types of financial transaction cards and the main uses of each type.
Chapter 18
Credit and Insurance

3. Credit Systems Accepting major credit cards
Merchant account provider
Creating a private credit card system
Consumer credit plans
Installment credit
Revolving credit
Chapter 18
Credit and Insurance

4. Financial Transaction Cards
Bank and nonbank credit cards
Co-branded credit cards
Affinity credit cards
Debit cards
Smart cards
Chapter 18
Credit and Insurance

5. Lesson 18.2 Managing Credit
Goals
Identify the information on which decisions about credit applications is based and how that information is obtained.
Describe the steps in collecting unpaid accounts.
Chapter 18
Credit and Insurance

6. Determining Credit Standing
The four Cs of credit
Character
Capacity
Capital
Conditions
The point system
Sources of credit information
Applicants
Credit agencies
Chapter 18
Credit and Insurance

7. Federal Laws and the Credit Card Industry
Equal Credit Opportunity Act
Truth-in-Lending Law
Fair Credit Reporting Act
Fair Debt Collection Practices Act
Chapter 18
Credit and Insurance

8. Analyzing Credit Sales
Accounts receivable relative to credit sales
Aging of accounts
Percentage of delinquent accounts relative to total outstanding accounts
Chapter 18
Credit and Insurance

9. Lesson 18.3 Insurance Principles
Goals
Discuss several ways that businesses can attempt to reduce risks.
Define important insurance terms.
Describe several noninsurable risks facing businesses and how managers can respond to each.
Chapter 18
Credit and Insurance

10. Basic Insurance Concepts
Insurance rate — amount an insurance company charges a policyholder for a certain amount of insurance
Cancellation of insurance
Insurable interest in property — possible financial loss the policyholder will suffer if the property is damaged or destroyed
Deductible — amount the insured party pays for a loss before the insurance company pays anything
Chapter 18
Credit and Insurance

11. Lesson 18.4 Types of Business Insurance
Goals
Describe several types of property and vehicle insurance that businesses need.
Identify the types of insurance businesses should consider carrying on the people associated with the business.
Describe additional insurance businesses may need to cover special types of risks.
Chapter 18
Credit and Insurance

12. Property Insurance Fire insurance Burglary and robbery insurance
Business income insurance
Transportation insurance
Vehicle insurance
Collision insurance
Comprehensive insurance
Vehicle liability insurance
Medical payments insurance
Chapter 18
Credit and Insurance

13. Other Types of Insurance
Insuring people
Health and disability insurance
Life insurance
Other business insurance needs
Business operations — liability insurance, malpractice insurance, bonding
Insurance for international operations
Chapter 18
Credit and Insurance