1. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Credit and Insurance 18.1 18.1 Credit Principles and Practices 18.2 18.2 Managing Credit 18.3 18.3 Insurance Principles 18.4 18.4 Types of Business Insurance CHAPTER 18

2. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 18.1 18.1 Credit Principles and Practices DLTs ● Describe three types of credit plans used by businesses. ● Identify several types of financial transaction cards and the main uses of each type. 2 CHAPTER 18

3. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Determining Business Credit Needs ● Accepting major credit cards ● Establishing a credit card acceptance system ● Comparing credit card plans ● Private credit card systems ● Consumer credit plans 3 CHAPTER 18

4. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Types of Financial Transaction Cards ● Bank and nonbank credit cards ● Co-branded credit cards ● Affinity credit cards ● Debit cards ● Smart cards 4 CHAPTER 18

5. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 18.2 18.2Managing Credit DLTs ● Identify the information on which decisions about credit applications is based and how that information is obtained. ● Describe the steps in collecting unpaid accounts. 5 CHAPTER 18

6. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Determining Credit Standing ● The four Cs of credit ● Character ● Capacity ● Capital ● Conditions ● Sources of credit information ● Applicants ● Credit agencies ● Federal laws and the credit card industry 6 CHAPTER 18

7. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Collections Management ● Collection procedures ● Analyzing credit sales 7 CHAPTER 18

8. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 18.3 18.3 Insurance Principles DLTs ● 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. 8 CHAPTER 18

9. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Insurance and Risk Reduction ● When businesses need insurance ● Managing to reduce risk 9 CHAPTER 18

10. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Basic Insurance Concepts ● Insurance rate ● Cancellation of insurance ● Insurable interest in property ● Deductibles 10 CHAPTER 18

11. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Noninsurable Risks ● Risks for which there is no insurance 11 CHAPTER 18

12. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 18.4 18.4Types of Business Insurance DLTs ● Describe how insurance is purchased and several types of business property and vehicle insurance. ● Identify the types of business insurance for people associated with the business. ● Describe additional business insurance that covers special types of risks. 12 CHAPTER 18

13. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Selecting and Buying Insurance ● 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 13 CHAPTER 18

14. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Insuring People ● Health and disability insurance ● Life insurance 14 CHAPTER 18

15. ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Other Business Insurance Needs ● Business operations ● Liability insurance ● Malpractice insurance ● Bonding ● Insurance for international operations 15 CHAPTER 18