Tom Has Bad Credit and Would Like to Fix It

question 74

Multiple Choice

Tom has bad credit and would like to fix it. He sees an advertisement from a company that can fix his credit problems. He calls and pays them a large fee to erase his credit history. The company cannot erase his history. Tom has been taken by a ___________ scam.

• A) telemarketing
• B) hard sell
• C) credit repair
• D) magazine

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Definitions:

Liabilities With Priority

Obligations that are given preferential treatment over other liabilities, often paid first in a liquidation scenario.

Total Assets

The cumulative total of all resources owned by an entity, including cash, investments, property, and other assets that have economic value.

Liabilities With Priority

Financial obligations that are given precedence over other debts of a company in the event of a liquidation or bankruptcy.

Unsecured Creditors

Creditors who have lent money without taking any assets as security, hence they bear a higher risk compared to secured creditors.