As the Only Store to Design and Sell Curtains in the Suburb

question 48

Multiple Choice

As the only store to design and sell curtains in the suburb of Oakland, the merchandise sold by Plush Parade is overpriced.Noticing this, Diana's Draperies sets up a showroom in the same suburb, reasoning that with lower prices, they would be able to attract more customers.Diana's Draperies is Plush Parade's

• A)partner.
• B)distributor.
• C)competitor.
• D)processor.
• E)franchiser.

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Definitions:

Security Interest

A legal claim or lien on collateral, giving a lender the right to take property to satisfy a debt if the debtor defaults.

Default

The failure to meet the legal obligations of a loan, typically by not making the required payments.

Re-Perfect

The act of renewing or restoring a security interest or claim in property to its original status or priority, generally after it has been lapsed or compromised.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure a loan or obligation.