Shade Tree Lending Corporation Advertises Loans as Fixed-Rate Loans But,in

question 11

Multiple Choice

Shade Tree Lending Corporation advertises loans as fixed-rate loans but,in fact,their rates or payment amounts will change.This is

• A)a legal and ethical-but morally arguable-financial ruse.
• B)a legal-but unethical-business practice.
• C)a necessary tactic to generate a profitable loan in today's market.
• D)a violation of the law.

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Definitions:

Sales Clerk

An employee typically found in retail settings responsible for processing sales transactions, assisting customers, and managing inventory.

Incentives

Forms of motivation aimed to encourage people towards certain behaviors or actions by offering rewards.

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth needs, suggesting that individuals are motivated to fulfill these needs in a hierarchical order.

Clayton Alderfer

A psychologist known for developing ERG theory, which categorizes human needs into existence, relatedness, and growth categories.