TYPE OF
CREDIT
1. Installment Loans
vs Revolving Credit
I = installment
R= revolving
CBE = could be either
2. Secured vs
Unsecured Debt
S = secured
U = unsecured
CBE = could be either
3. Variable vs Fixed
Rate
V = variable
F = fixed
CBE = could be either
Auto loan
Credit card
Mortgage
Payday loan
Personal loan (from bank)
Small business loan (from
bank
Student loan (Federal)
Exit Ticket

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.

Abus pass costs $5 per week. which of the following equations shows the total cost in dollars, t, of the bus pass for a certain number of weeks, w? t = 5w w = 5t t = 5 + w w = 5 + t