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BM Chp. 18
Credit
Term | Definition |
---|---|
Installment Credit | Customers agree to make a stated number of payments over a fixed period of time and at a specific interest rate. |
Revolving Credit | Combines the feature of a store credit card and installment credit. |
Debit Card | Immediately transfers funds electronically from the customer's checking account to the business's account when a purchase is made. |
Smart Card | Plastic card with an embedded microprocessor that can store and process a large amount of information. |
Character | Measure of a person's sense of financial responsibility or personal belief in the obligation to pay debts. |
Capacity | Measure of earning power and reflects the person's potential to pay, based on current income and other financial obligations. |
Capital | Measure of the credit applicant's current financial worth or ability to pay based on assets. |
Conditions | An assessment of the economic environment |
No-Fault Insurance | Each company is required o pay the losses of its insured when an accident occurs. |
Health Insurance | Provides protection against the expenses of individual health care. |
Disability Insurance | Offers payments to employees whoa re not able to work because of accidents or illnesses. |
Life Insurance | Pays money upon the death of the insured to a person or persons identified in the insurance policy. |
Liability Insurance | Protects against losses from injury to people or their property that result from the products, services, or operations of the business. |
Malpractice Insurance | A type of liability insurance that protects against financial loss arising from suits for negligence in providing professional services. |
Bonding | Pays damages to people whose losses are caused by the negligence or dishonesty of an employee or by the failure of a business to complete a contract. |