Post-Test Review 2

This type of business is a great example of one that engages in Price Competition.

• Dine-In Restaurants

• Gas Stations

• Jewelry Stores

• Hair Studios

A business who competes with other businesses by working hard to gain/retain customers by offering great customer service is utilizing Non-Price-Competitive Strategies.

• True

• False

I have $1500 to purchase an investment. I choose to invest $500 in investment A, $1000 in investment B and therefore, I cannot invest in C. C is considered the _____.

• Next Choice

• Least Favorable Investment

• Opportunity Cost

• Most Favorable Investment

Defaulting is _____.

• when a borrower fails to pay what is owed.

• an asset that is linked to a loan.

• Making a mistake.

• good for your credit score.

The three major Credit Bureaus include Transunion, Equifax and Equity.

• True

• False

A high credit score is best and will earn you a high interest rate.

• True

• False

As an individual trying to establish credit, it is wise to pay bills on time, own a minor credit card (like Kohl's credit card), have a loan with a co-signer and/or have secured credit.

• True

• False

The government agency that regulates the securities market and protects investors is the _____.

• ABC

• FTC

• ATF

• SEC

Owning stock that is not registered with the SEC is the safest type of investment and is guaranteed to produce a high ROI.

• True

• False

Profits from the sale of a capital asset, such as shares of stock, a business, a parcel of land, or a work of art is called _____.

• Rent

• Dividends

• Interest

• Capital Gains