Which of the Following Obligations Is Not One That a Credit

question 13

Multiple Choice

Which of the following obligations is not one that a credit provider must generally comply with if it wishes to enforce a credit contract?

• A)To serve a default notice on the debtor.
• B)To obtain a court order before repossessing mortgaged goods.
• C)To serve appropriate notices after taking possession of goods or selling them.
• D)To offer to vary the interest rate and charges to make them more manageable for the debtor.

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Definitions:

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow to recover the cost of the investment.

Salvage Value

The projected sum an asset is expected to fetch at the end of its service life.

Cost Savings

The reduction in costs achieved through efficiency improvements, strategic purchase, or avoiding unnecessary expenses.

CCA Class

In Canadian taxation, a classification system for capital assets that determines the rate at which they can be depreciated.