Kip Opens an Account at a Lotsa Goodies Store, and Buys

question 42

Multiple Choice

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip's parents. This violates

• A) no federal law.
• B) the Fair and Accurate Credit Transactions Act.
• C) the Fair Debt Collection Practices Act.
• D) the Truth-in-Lending Act.

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Definitions:

Venture Capitalism

A financing method where investors provide funds to startups and small businesses with high growth potential in exchange for equity, or partial ownership of the company.

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold.

Limited Liability Corporation

A commercial setup that blends the taxation approach of a partnership or sole proprietorship, where taxes pass directly to the owners, with the limited liability protection typical of a corporation.

Liability Purposes

Considerations or actions taken to minimize legal responsibility and financial risk within an organization or personal activities.