Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Question
Chapter 6, Problem 10FPE
Summary Introduction
To identify: The liability of Person L in case of unfamiliar and fraudulent charges.
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Students have asked these similar questions
Kip opens an account at Lotsa Goodies, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, a Lotsa Goodies representative contacts Kip’s parents. This violates
a.
the Fair Debt Collection Practices Act.
b.
the Fair and Accurate Credit Transactions Act.
c.
the Truth-in-Lending Act.
d.
no federal law
30. Georgina is in dispute with her bank about some debits to her business account which she does not recognize. Which of the following is Georgina's duty with regards to her fiduciary relationship with her bank?
To check bank statements
To reimburse the bank if her personal identification number (PIN) is used fraudulently by a thief to obtain cash
To keep her bank cards safe
To maintain the account in credit unless specifically agreed otherwise
31. Helkats plc ensures that it offers breakthrough products in the market niche in which it operates. In terms of Porter's generic competitive strategies, Helkats plc's strategy is
Cost leadership
Cost-focus
Differentiation
Differentiation-focus
Why might it be shortsighted to bluntly refuse lending money or issue credit cards to people without a credit history—such as young students—or to consumers with less-than-stellar credit?
Chapter 6 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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Similar questions
- How do sellers benefit from allowing their customers to use credit cards? Do sellers bear any risk if their customer does not pay their credit card bill?arrow_forwardWhen 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. A. What are the benefits and challenges of continuing to attempt collection yourself? B. What are the benefits and challenges of selling debt to a collection agency? C. If you had a dishonored notes receivable, which option would you select and why? D. Would you weight certain benefits or challenges differently when making your selection? How?arrow_forwardCan you go to jail for not paying your credit loan? Explain carefullyarrow_forward
- . if you are unable to pay your credit card bills what can you do?arrow_forwardWhen 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?arrow_forwardShould this person open a credit card account? If they do decide to open the new credit card account, what’s one thing this individual should monitor or use caution?arrow_forward
- Suppose Beth comes into a large sum of money and decides to lend it out to earn interest on it. Because she lacks the expertise to evaluate the credit risks of potential borrowers, she decides to deposit the money in her local bank, a financial intermediary. This is an example of how financial intermediaries can help solve the problem of: Adverse selection Fractional reserve banking Insolvency O Time depositarrow_forward1. Anne does not know whether to get a limited-purpose credit card or a charge card. What is your advice?arrow_forwardObtaining credit begins with you. After you complete a credit application, the lender decides if you are a good risk. Agencies that collect credit information about individuals are called credit bureaus. For a fee, they provide information about you that lenders need to decide if you are a good risk. The information you provide on your application is checked against the information the credit bureaus have collected about you. Why is your credit application approved or denied? DENIED 0000 SORRY! to you fra C cand hand Collateral Physical appearance Character Political affiliation Marital status Capacity e yo yhing ring you Bestar lates Onge y Bad news-your credit application was denied. What are the major factors about you that the lender used to evaluate your creditworthiness? Check all that apply. Select reasons why you were probably turned down for credit. Check all that apply. Large amount of available credit relative to income False or misleading information on your application…arrow_forward
- Credit Card Fraud and Identity Theft Loss of a credit card, the information on it, or your personal information can cause serious problems. For example, you could be required to pay for purchases you didn't make, or you could spend years repairing the damage to your credit rating. Consider the following two alternative behaviors. Behavior A If I receive an e-mail with a sales offer I like, rather than provide my account number through the e-mail link, I open a separate browser window and directly access the company's website to make my purchase. B I save all my charge receipts and reconcile them to my monthly statement, most often by accessing my account online. Which behavior is likely to reduce your chance of experiencing credit card fraud or identity theft? O Alternative A O Alternative B Both Alternatives A and B ONeither Alternative A nor Barrow_forwardA drawer, knowing that he has insufficient credit in the bank, issues a check, which was eventually dishonored by the drawee bank. The drawer may be held liable for: a. Violation of Bouncing Checks Law b. Estafa c. Civilly liable d. All of the abovearrow_forwardProvide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?arrow_forward
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