Jessie Just Bought an SUV and Financed It with an Automobile

question 143

Multiple Choice

Jessie just bought an SUV and financed it with an automobile loan.She will pay 48 monthly payments of $425 each and one final payment of $3,000.What type of clause is in her sales contract?

• A)Repossession
• B)Acceleration
• C)Balloon
• D)Prepayment penalty

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Definitions:

Direct Labour Cost

The total cost of wages paid to workers directly involved in manufacturing a product or providing a service.

Manufacturing Overhead

The indirect costs related to manufacturing that are not directly tied to a specific product, such as utilities, rent, and salaries of maintenance staff.

Indirect Costs

Expenses not directly tied to a specific product or service, such as utilities, rent, and administrative salaries, that are necessary for running the business.

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, offering services such as legal advice and representation.