6-35 Which of the Following Is NOT True

question 45

Multiple Choice

6-35 Which of the following is NOT true?

• A)The finance company industry tends to be very concentrated.
• B)Twenty of the largest finance companies account for more than 65% of the industry assets.
• C)Many of the largest finance companies tend to be wholly owned or are captive subsidiaries of major manufacturing firms.
• D)Finance companies specialize only in consumer loans and do not make business loans.
• E)Finance companies often provide captive financing for the purchase of products manufactured by their parent company.

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Definitions:

Volt-Amperes-Reactive

A unit of measure for reactive power in an electrical system, indicating the non-working power in an AC circuit.

Reactive Power

The component of electrical power that does not perform any work, typified by its presence in AC circuits and measured in Volt-Amps Reactive (VAR).

Inductive Reactance

The opposition that inductance offers to alternating current, dependent on the frequency of the current.

Resistance

A measurement of the opposition to the flow of electric current, causing electrical energy to be converted into heat.