Docstoc

INTRODUCTION TO BUSINESS

Document Sample
INTRODUCTION TO BUSINESS Powered By Docstoc
					                                                                            INTRODUCTION TO BUSINESS CHAPTER 29 TEST


1.    Why is credit referred to as a temporary substitute for cash?
      a.               Because it must be repaid.
      b.               Because it is easily obtained.
      c.               Because it is from a bank.
      d.               Because it is the same as a check.

2.    What should you do if you cannot pay a bill on time.
      a.             Pay it with a credit card.
      b.             Call the creditor and explain.
      c.             Call the credit card company for more money.
      d.             Ask the bank for a loan.

3.    What is the best way to control credit?
      a.              Get a lot of credit cards.
      b.              Borrow as much money as possible.
      c.              Pay your bills each month.
      d.              Never borrow money.

4.    Credit is considered a binding business agreement.
      a.               The above statement is true.
      b.               The above statement is false.

5.    You can establish a good credit rating by
      a.              never borrowing money.
      b.              only borrow from local banks.
      c.              use credit and make payments on time.
      d.              use credit cards instead of bank loans.

6.    Charging a purchase at a store is an example of loan credit.
      a.             The above statement is true.
      b.             The above statement is false.

7.    Everyone has the right to credit.
      a.             The above statement is true.
      b.             The above statement is false.

8.    The one who sells on credit or makes the loan is called a creditor.
      a.            The above statement is true.
      b.            The above statement is false.


9.    Your capacity to repay is mainly you willingness to pay.
      a.              The above statement is true.
      b.              The above statement is false.

10.   Most businesses operate without using credit.
      a.             The above statement is true.
      b.             The above statement is false.

11.   Many consumers use credit because it is convenient.
      a.           The above statement is true.
      b.           The above statement is false.

12.   Careless use of credit can lead to buying at higher prices than is necessary.
      a.              The above statement is true.
      b.              The above statement is false.

13.   Character, cash, and capacity are essentially the same as far as the bank is concerned.
      a.              The above statement is true.
      b.              The above statement is false.

14.   If you fail to make installment payments on a car, the creditor has the right to take it back, or ____________ it.
      a.                destroy
      b.                repossess
      c.                dispossess
      c.                reposit

15.   An agency that provides banks and other businesses with information about consumers of credit is called a(n) ____________
      a.             collection agency
      b.             deposit corporation
      c.             credit bureau
      d.             secured loan bureau

16.   How much you earn in a week is related to
      a.            character
      b.            capacity
      c.            capital
      d.            credit rating

17.   Your record of   paying bills you owe is related to
      a.                character
      b.                capacity
      c.                capital
      d.                credit rating

18.   Your employment record related to your
      a.           character
      b.           capacity
      c.           capital
      d.           credit rating

19.   Wal-Mart will accept credit cards like VISA and Discover because
      a.              they make money on loaning money.
      b.              they make money by charging interest.
      c.              they will increase sales.
      d.              all of the above.


20.   The amount you owe other people related to your
      a.            character
      b.            capacity
      c.            capital
      d.            credit rating

21.   Your reputation for honesty related to your
      a.              character
      b.              capacity
      c.              capital
      d.              credit rating

22.   Your ability to pay bills related to your
      a.                character
      b.                capacity
      c.                capital
      d.                credit rating

23.   The value of all of your possessions relates to
      a.               character
      b.               capacity
      c.               capital
      d.               credit rating

				
DOCUMENT INFO