POB Final Exam Review

—Requires creditors to correct billing mistakes promptly.

Classified as medical insurance.

Which is an example of consumers establishing demand?

A systematic process of managing risk to achieve set objectives.

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

Contract between creditors and debtors. 

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

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

Frost damages to a strawberry patch.

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

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

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

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

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

—A disclosure required by law for a credit agreement.

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

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

The possibility of incurring a loss. 

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

The Three C’s of Credit

An exchange of potential future losses for a smaller payment.

General Electric sells insurance to customers to cover their appliances.

—Honesty to pay a debt when it is due.

A record of the transactions completed during a billing period. 

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

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

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

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

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

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

An artist purchased insurance to cover his collection.