Divide into groups and, under the guidance of a group leader, compare and contrast the credit policies and methods of monitoring cash collections appropriate for the following types of businesses:

1. A large hotel serving liquor and meals, together with the provision of motel-style accommodation to the travelling public

2. A relatively large manufacturer of leisure footwear, supplying shoes to a large number of small independent footwear retailers operating mainly through large suburban shopping centres. There are a number of similar manufacturers supplying footwear in a very competitive market.

Required

After discussion as outlined, each group should develop a written plan in order for managing the receivables appropriate for each of the businesses.