Handyman Hardware, a Small Community-Based Store, Offers Its Consumers the Option

question 66

Multiple Choice

Handyman Hardware, a small community-based store, offers its consumers the option of using credit. Creditworthy individuals are able to use the "HH Credit Card" for all purchases up to a credit limit of $1,000. Consumers are required to pay at least 20 percent of their outstanding balance at the end of each month. A two percent finance charge is assessed on the unpaid balance at the end of each billing cycle. Handyman Hardware is employing ____ in its business.

• A) open charge accounts
• B) installment accounts
• C) revolving charge accounts
• D) selective accounts

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Definitions:

Articles of Incorporation

Official documents filed with a governmental body to legally form a corporation, outlining its structure, purpose, and operations.

Secretary of State

A high-ranking government official typically responsible for the foreign affairs of a country, or in some cases, domestic administrative duties within state governments in the United States.

Preincorporation Contract

An agreement made by individuals before the formation of a corporation, which the corporation may later adopt or ratify.

Promoter

An individual or organization that helps to initiate and plan significant events, businesses, or movements.