Andrew Is Allowed to Purchase a Reasonably Priced Notebook Computer

question 32

Multiple Choice

Andrew is allowed to purchase a reasonably priced notebook computer for graduation.He sees one at Excel Electronics for $999.99 and calls his parents to assure them the computer costs "less than a thousand." Both Andrew and Excel Electronics are using _____ to downplay the price of the computer.

• A)cost-based pricing
• B)personal selling
• C)price fixing
• D)odd pricing

---

Definitions:

Chattel Mortgage

A loan arrangement in which personal movable property is used as security for the loan, and the lender holds a mortgage over the chattel.

Trust Receipts

Documents that acknowledge the receipt of goods that are held in trust for the lender until the loan associated with the goods is paid.

Blanket Lien

A type of lien that gives the creditor the rights to seize nearly all types of assets and property of the debtor in the event of default.

Trade Credit

A type of commercial financing where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.