THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 19

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The probability that interest rates on housing loans will go up in the next 6 months is estimated to be 0.20.The probability that house sales will decrease is estimated to be 0.6.The probability that interest rates will go up and house sales will decrease is estimated to be 0.15.
-The probability of an increase in interest rates and not a decrease in house sales is:

• A)0.20
• B)0.05
• C)0.25
• D)0.50

Identify the influence of cognitive appraisals on emotional responses.

Identify and understand the mechanisms and purposes of various credit policies and terms.

Understand the impact of credit policy changes on accounts receivable and sales volume.

Calculate break-even points for changes in credit policy.

---

Definitions:

Subject to Taxation

Describes income, goods, property, and other financial transactions that are considered taxable by the government.

Manufacturing Plant

A manufacturing plant is a large industrial facility where goods are produced through the combination of labor, machines, and processing of raw materials.

Certificate of Authority

A document issued by a state government granting a foreign business entity permission to conduct business in that state.

Foreign Corporation

A corporation that is registered and operates in a different jurisdiction from where it was originally incorporated.