Which of the Following Statements Is True of Redlining

question 3

Multiple Choice

Which of the following statements is true of redlining?

• A) It refers to the practice in which real estate brokers guide prospective home buyers toward or away from certain neighborhoods based on their race.
• B) It refers to the perceived business practice of a company providing a product or a service based on the customer lifetime value.
• C) It refers to a way of encouraging white owners of property to sell their houses at a loss by implying that racial minorities were moving into their previously racially segregated neighborhood, thus depressing real estate property values.
• D) It refers to an organization targeting its minority consumers by charging them more for services or products when compared to the charges for its non-minority consumers.
• E) It refers to the refusal of an organization to make loans at all in certain areas where property values are low.

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Definitions:

Merchandise Inventory

Merchandise Inventory consists of products that a company buys to resell at a profit. It is often one of the largest current assets for businesses that sell physical goods.

Goods In Process Inventory

Items that are partially completed in the production process; not yet finished goods but not raw materials.

Raw Materials Inventory

Raw Materials Inventory is the stock of materials that are on hand and available for use in the production process.

Finished Goods Inventory

Products that have completed the manufacturing process and are ready to be sold to customers.