You Are Planning on Starting Your Own Business in 18

question 94

Multiple Choice

You are planning on starting your own business in 18 months and you intend to purchase a new home.You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month.Your banker has told you that you can easily qualify for a PITI of $1,150 per month.Which of the following is the most reasonable explanation for this discrepancy?

• A)Your banker knows you really would be happier in a more expensive house.
• B)Your banker is not aware of your other long-term financial goals.
• C)Your banker's number is more accurate than your number.
• D)None of the above is a reasonable explanation.

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Definitions:

Liability

A legal obligation or responsibility to settle a debt or make good on a promise or contract.

Third Parties

Individuals or entities that are not directly involved in a legal agreement or transaction but may be affected by it.

Actual Notice

Notice of agency termination that is given by directly informing third parties, either orally or in writing.

Agency Termination

The legal ending of an agency relationship, which can occur for various reasons such as the fulfillment of the agency's purpose, mutual agreement, or action by either party.