If a Practitioner Decides Not to Extend Credit to a Patient

question 1

Multiple Choice

If a practitioner decides not to extend credit to a patient, what must be done according to the Fair Credit Reporting Act?

• A) Call the patient and tell him his bill must be paid in full immediately
• B) Inform the patient in writing why credit was denied
• C) Explain to the patient that you will be unable to extend credit
• D) Avoid discussing the issue of credit with the patient to avoid embarrassment
• E) Report the patient's lack of creditworthiness to the state's credit monitoring service

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Definitions:

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.

Corporate Charter

A legal document issued by a government that establishes a corporation as a legal entity and outlines its rights and obligations.

Formal Accounting

A systematic process for recording, summarizing, and reporting the financial transactions of an organization, adhering to standardized guidelines and principles.

Initial Capital

The amount of money that is invested in a business at the start, used to cover startup costs and initial operating expenses.