In which of the following policies does the face amount of the policy decrease over time?
A)
Whole life
B)
Renewable term
C)
Decreasing term
D)
Universal life
C
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When things don’t fit together as we would want them to or as we expect, we make adjustments to restore this. The theory that applies here is ______.
Fill in the blank(s) with the appropriate word(s).
Electro Corporation extends credit to its customers to purchase appliances, furniture, and other goods. Electro Corporation could borrow from a bank using its accounts receivable as collateral, thereby placing debt on the balance sheet. Electro Corporation would then use the cash collections from the receivables to repay the bank loan with interest. Instead, Electro Corporation sells the accounts
receivable to the bank for an amount that is less than the cash the bank expects to collect from receivables purchased. The amount takes account of expected defaults, which would reduce the cash generated by the receivables. This difference between the amount paid to Electro Corporation by the bank for the receivables and the amount that the bank expects to collect from the receivables provides the bank with its expected return. Electro Corporation must transfer additional uncollected receivables to the lender/purchaser bank under either of two conditions: (1) if any receivables become uncollectible, and (2) if interest rates rise above a specified level. Which of the following is/are true? a. Electro Corporation bears both credit risk and interest rate risk and should treat the transfer of receivables as a loan, with debt appearing on its balance sheet. b. Electro Corporation bears both credit risk and interest rate risk and should not treat the transfer of receivables as a loan, with no debt appearing on its balance sheet. c. Electro Corporation does not bear credit risk or interest rate risk and should not treat the transfer of receivables as a loan, with no debt appearing on its balance sheet. d. Electro Corporation has no further obligation and will treat this transaction as a sale, with no incremental debt on the balance sheet. e. Electro Corporation bears credit risk but no interest rate risk and should treat the transfer of receivables as a loan, with debt appearing on its balance sheet.
The courts have determined that producers have the right under most circumstances to choose or reject the channel members with which they will do business.
Answer the following statement true (T) or false (F)
In Lightle v. Real Estate Commission, involving a real estate agent in a dispute over a house sale, the Alaska high court held that the claim of fraudulent misrepresentation against Lightle was justified because:
a. Lightle wanted to buy the house and so misled other buyers b. Lightle failed to tell the sellers that there were offers on the house c. Lightle made racist remarks about the potential buyers d. Lightle made a full disclosure that revealed facts that "might have affected the recipient's conduct in the transaction in hand." e. none of the other choices are correct