Duplicate of POB Final Exam Review

An exchange of potential future losses for a smaller payment.

—A disclosure required by law for a credit agreement.

The possibility of incurring a loss. 

—Honesty to pay a debt when it is due.

Mary runs a coffee shop and offers a variety of services.

A systematic process of managing risk to achieve set objectives.

A record of the transactions completed during a billing period. 

The Three C’s of Credit

—Requires creditors to correct billing mistakes promptly.

—Require debtors to make monthly payments of a specified amount for a period of time.

Cover eye examinations, prescription lenses, frames, and contact lenses.

—A written promise to repay based on a debtor’s excellent credit history.

Duke Energy Power Company uses water to power the area.  Which resource is the company using?

Which is an example of consumers establishing demand?

Agreement to obtain money, goods/services now in exchange for a promise to pay in the future.

Contract between creditors and debtors. 

Sears installed centralized customer service stations in order to increase convenience.

An example of a value for a market economy is a:

Riding along on a crowded highway with other drivers that are speeding.

A book company decline an order to produce 6000 books in one day.

Covers part or all of complicated dental work such as crowns or bridges.

Mary opened a shoe store that she operated for only six months.

Fred’s Diner incurred a loss due to a fire.

General Electric sells insurance to customers to cover their appliances.

Frost damages to a strawberry patch.

An artist purchased insurance to cover his collection.

A book company has a contract for a trucking company to transport its books.

A competitor of Staples, an office supply store, moved right across the street.

Covers all or part of the surgeon’s fees for an operation.

Classified as medical insurance.

—Current available assets that could be used to repay debt if income was to become unavailable.