Which of the Following Is Traditionally the Major Type of Consumer

question 5

Multiple Choice

Which of the following is traditionally the major type of consumer loans for finance companies?

• A)Revolving loans.
• B)Motor vehicle loans and leases.
• C)Wholesale loans.
• D)Equipment leases.
• E)Home equity loans.

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Definitions:

Capital Intensive

Describes industries or businesses that require large amounts of investment in heavy machinery, equipment, or other capital assets to produce goods or services.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the level of risk in meeting profitability targets.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount of sales decline a business can tolerate.

Net Operating Income

The profit generated from a business's regular operational activities, excluding expenses and taxes.