C18 Mgmt Study Resources

Aging of accounts is watching this account

Requires businesses to show the finance charge on statements as APR

You should compare credit cards because all agreements are not the same.

Cards and other large purchases are often made with

If a person does not pay on their account, the business can repossess the merchandise you stopped paying on.

Most businesses process credit card transactions using a computerized system.

These are uninsurable risks

An advantage for a store having its own credit card operation is the opportunity to mail advertising to cardholders

a measure of earning power and reflect's the applicant's potential to pay based on income and debt

An accountant is the person that runs statistics to determine premium costs and potential profit.

Having historical records of losses can help insurance companies predict expenses.

a measure of the credit applicants current financial worth or ability to pay

Requires businesses to give credit card applicants a reason for rejection, if requested

The beneficiary is the person that receives insurance by signing an insurance contract.

an assessment of the economic environment that affect credit decisions

Must the policyholder have an insurable interest in the property in order to purchase insurance?

The longer an account takes to collect, the more probability it is to collect

Gives consumers the right to see their credit agency reports

If a deductible is included in insurance, the premium will be higher than if there is no deductible

a measure of an applicant's sense of financial responsibility

Limits liability when debit cards are lost or stolen.

Visa and Mastercard are not associated with a bank

Requires credit card companies to use clear and understandable language on statements