A Valuable Asset Pledged to Assure Loan Payments and Subject

question 64

Multiple Choice

A valuable asset pledged to assure loan payments and subject to seizure upon default is called:

• A) capacity.
• B) character.
• C) capital.
• D) collateral.
• E) conditions.

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Definitions:

Profit Orientation

A company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing.

Pricing Methods

Strategies and techniques employed by businesses to set the sales price of products or services.

Reference Price

The price that consumers consider reasonable or compare with when evaluating the price of a product or service.

Original Price

The initial selling price of a product before any discounts, sales or price changes are applied.