Wise Remediation Test

In order for a contract between two parties to be legally binding, one party must make an offer and the other party must accept the offer. This offer and acceptance meet the __________ provision.

• consideration

• competent parties 

• jurisdiction 

• agreement 

Which of the following is an example of involuntary debt:

• Automobile loan 

• Court judgment lien 

• Fixed-rate mortgage 

• Unsecured line of credit 

The president of an international company tells reporters at a press conference that the company is doing well and will be meeting quarterly projections. Investors jump on the stock as a sound investment, driving the price of the stock up. On the side, the president sells her/his shares in the company. When the company's financials are released, the truth comes out: the company is in bad financial shape. The president of the company is guilty of

• Phishing

• Pyramid [PONZI] scheme

• Affinity fraud

• Insider trading

What are producers most likely to do if they decide their incomes are inadequate?

• Choose not to make goods and services

• Continue to increase production

• Choose not to supply needed resources

• Continue to buy more resources

Why is deflation bad for the economy?

• It raises prices for both consumers and businesses. 

• It causes shortages of goods.

• It encourages too much spending

• It reduces output and can lead to layoffs

Which of the following is a business opportunity that requires a person to purchase the right to sell an established good or service under the parent company's name:

• Franchise

• Incorporation

• Foreign

• Brokerage 

Which of the following is a disadvantage of a checking account:

• Overdraft protection 

• Direct payroll deposit 

• Account balance requirement 

• Online transaction options 

Putting $100 in a savings account today and earning 4% interest over the next year illustrates the concept of:

• Principal modification

• The time value of money

• Opportunity cost

• Inflationary impact

What source of credit buys borrowers' contracts from sellers?

• Sales finance companies 

• Commercial banks 

• Credit unions

• Savings and loan associations

What course of action can a lender take if a debtor's account is past due?

• Claim defamation 

• File a judicial lien 

• Apply for bankruptcy 

• Liquidate assets