Which of the Following Statements Is True Regarding Non-Installment Credit

question 121

Multiple Choice

Which of the following statements is true regarding non-installment credit?

• A) The borrower has a longer time to repay.
• B) Monthly payments of principal and interest must be paid.
• C) The borrower has an unlimited amount of credit.
• D) Credit is usually issued for 30 days or less.

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Definitions:

Vertical Organization

A management structure where hierarchy is emphasized, with clear lines of authority and responsibility flowing from top to bottom.

Span of Control

The number of subordinates a manager or supervisor can directly control. This number varies with the complexity of tasks.

Delegation

The assignment of authority and responsibility to another person to carry out specific activities while retaining the ultimate accountability for the outcome.

Low-Cost Strategy

A business approach aimed at gaining a competitive advantage by minimizing costs while maintaining acceptable quality and pricing for products or services.