TSM Ltd is a Sydney-based hardware store. Its stores are open to the public and serve...

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TSM Ltd is a Sydney-based hardware store. Its stores are open to the public and serve more than 1,500 local tradespeople. TSM has just introduced a new credit policy that allows tradespeople who register with TSM as business customers to automatically receive a $5,000 trade credit on store purchases. With reference to the information provided: a) identify the key risk in TSM's new credit policy b) estimate the significance of the risk and explain its implications (low/moderate/high) c) assess and explain the likelihood of the risk (low/moderate/high) d) propose an adequate control activity to address the risk. TSM Ltd is a Sydney-based hardware store. Its stores are open to the public and serve more than 1,500 local tradespeople. TSM has just introduced a new credit policy that allows tradespeople who register with TSM as business customers to automatically receive a $5,000 trade credit on store purchases. With reference to the information provided: a) identify the key risk in TSM's new credit policy b) estimate the significance of the risk and explain its implications (low/moderate/high) c) assess and explain the likelihood of the risk (low/moderate/high) d) propose an adequate control activity to address the risk.

Answer rating: 100% (QA)

a The key risk in TSMs new credit policy is the potential for default by the business customers who ... View the full answer