A Collection Agency Is Prohibited From

question 15

Multiple Choice

A collection agency is prohibited from:

• A) calling the debtor in the middle of the night.
• B) calling the debtor from 5-6 p.m. when he is likely to be eating dinner.
• C) threatening to sue if it actually intends to do so.
• D) contacting third persons to find out the whereabouts of a debtor.

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Definitions:

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.

Other Reserves

Equity accounts that record gains and losses recognized directly in equity, including revaluation reserves and reserves created from the reallocation of profits.

Non-controlling Interest

An ownership interest in a corporation where the stake does not grant the holder the majority of voting rights.