Principles Of Business: Unit 6 Review: Question Preview (ID: 8985)

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Common stockholders
a) have no right to share in a corporation’s profits. b) receive dividends limited to a set rate. c) are paid dividends only after preferred stockholders are paid their dividends. d) have no voting rights within the corporation, as do preferred stockholders.
This type of charge account requires the buyer to make full payment within a stated period.
a) budget charge account b) revolving charge account c) signle payment account d) sales charge account
Which of the following will NOT help you to establish a good record of creditworthiness?
a) having good school grades b) making regular deposits to your savings account c) charging small purchases and paying on time d) changing jobs frequently
Simple interest =
a) S ´ R ´ T b) P ´ R c) P ´ T d) P ´ R ´ T
Liability coverage pays for__________.
a) Damage or injury for which you are responsible. b) theft, fire, vandalism, or other damage not related to an accident c) The accident related cost of repairing or replacing your vehicle d) None of the above
A higher deductible results in ________.
a) tax savings b) a higher premium c) a lower premium d) None of the above
A maximum amount you are allowed to owe at one time on your credit account is called the
a) installment. b) credit limit. c) finance charge. d) charge limit.
Which of the following is NOT one of the “three Cs of credit”?
a) creativity b) capacity c) capital d) character
Which of the following is a disadvantage of using credit?
a) convenience b) credit rating c) immediate possession d) overbuying
How do you find the Finance Charge?
a) Installment Price - Cash Price b) Cash Price - Installment Price c) Installment Price - Interest d) None of the above
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