BUSI 320 DB 2

what is defaulting?  building a credit history getting a low credit score opening too many credit accounts failing to pay debts

When a customer is delinquent on paying a notes receivable, your company has the option to continue to attempt collection or sell the debt to a collection agency. Research the benefits and challenges with each of these options and in a short essay, answer the following questions. Required part B What are the benefits and challenges of continuing to attempt collection yourself? What are the benefits and challenges of selling debt to a collection agency? If you had a dishonored notes receivable, which option would you select and why? Would you weight certain benefits or challenges differently when making your selection? How?

Money Management.  What happens when a student loans defaults?

What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and trying to get a loan, which is the best method to use (NPV, IRR, Payback period)?

Why aren't short term liabilities included in net new borrowing? A B с Thats messed up, they should be Because short term debt like credit cards or accounts payable are more like operating debt. Creditors are defined as long term lenders

Which of the following is NOT a reason for sales discounts to be offered to the debtors(customers)? A. Increase the amount paid by the debtors B. Improve the liquidity by turning the accounts receivable into cash C. Encourage earlier settlement of debts by debtors  D. Reduce the level of bad debts

Describe two advantages of using credit cards. ..... Choose the correct answer below. O A. Relatively low interest rates on unpaid balances and convenience of use. B. You get to use a product before actually paying for it and it provides a source of temporary emergency funds. C. May provide amenities and difficulty to overspend. D. Lack of caps on interest rates and fees.

Please answer the following questions    what are two types of credit what is a security interest who is the debtor and creditor what happens if the debtor defaults what type of transaction requires a financing statement

Many types of debt including auto loans, student loans and credit debt are securitized.  The practice of securitization helps provide extra funding to those markets and reduces the risk of lending by pooling the debt. a) true b) false

Which of the following situations are likely to result in higher loan defaults?     Mortgages are held by originating institutions in their portfolios.   Borrowers have higher equity in their homes.   Lenders who require documentation of income, liabilities and asset ownership.   Borrowers with low credit scores.

When you borrow money, you typically have to pay an interest rate. What does interest represent? a) The cost of borrowing money b) The profit earned on an investment c) A bank fee d) A penalty for late payment????

According to the article, why are interest rates on credit cards higher than interest rates on cars or homes? Choose one or more: A. People who use credit cards take more financial risks than people who buy cars or homes. ⒸB. Credit card issuers are londing money that is unsecured. C. Credit card debts are among the first written off when people file for bankruptcy. O D. Credit card debt typically is for a shorter time period than a loan for a car or home.