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96 Cards in this Set
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Manfucaturing business |
a business making something from raw materials |
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Mechancing business
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that purchases finished goods for resale
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Service business
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provides a services like massage palors
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New venture plan
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written of a business description of a new business that projects marketing operational and financial aspects
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Sole properties
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have unlimited liability and is taxed only once. a funeral home will be held personally responsable for all acts and those of the staff. if someone is hurt during a service the director will probably be sued. the advantages of this is ease of starting and the low cost of organization and a increased amount of profit incentives. however their is an unimited amount of risk and limited life
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Partnership
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legal entity formed by two or more co–owners it is also taxed once and has unlimited liability. there are general or limited partnerships.
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LLC
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limited liability company or corporation in which the stock holders have limited liability but are only taxed once.
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Es corp
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taxed only once but limited liability
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S corp
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ordinary corperation is taxed twice with the share holders having limited liability.
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Hybrid business
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a business who sale merchandised and provide service business
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Small business
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more then half of business are small business and it is the backbone of the economy, more effective by changing economy
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Reasons why people start own business
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To make money. To be your own boss. “you will never get rich working for someone else”. you get flexibility. inheritance
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negatives to business
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investment liability and return debt with long hours as sole employee and poor planning for future can led to business failing
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what is the problem with bad economy
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luxuuary item are not selling for funeral homes, low casket sale direct cremation no service sales.
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competition
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includes bad location, price changes against big business and not antipacting the cost of the business
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“red tape”
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government regulations
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Federal trade commssion
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controls prices in funeral home. Must give prices to consumer, for Casket who makes and what made from and model number on price list
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a s corperatio
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has to be a domestic corporation. Have only allowable shareholders including individuals, certain trusts, and estates and may not include partnerships, corporations or non–resident alien shareholders. Have no more than hundered shareholders Have only one class of stock Not be an ineligible corporation (i.e. certain financial institutions, insurance companies, and domestic international sales corporations).
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cash discount
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a reduction of the price given for payment of an account within the time limits established by the sales contract
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quantity discount
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reduction in the amount of bill when a minimum quantity of merchandise has been ordered
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inventory turnover
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the number of times the average inventory has been sold or used up during a period
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general partnership
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is an association of two or more persons who conduct business as co–oweners you have personal liability if the funeral home is sued. these are also easy to form and you gain the efficiency of laor but lose continuity and risk frozen investments
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limited partnership
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iis where there are general partners and partners who have a limited interset such as investors who put up capital and have limited interest in the profits.
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corporations
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are legal entities established under state law. they have shareholders and are usually established under the sate Business Corporation Act.
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advantages and disadvantages of corporations
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shareholders are not personally liable for the actions of the funeral home corp. the directors and officers of the cop are not personally liable for their actions if acting within the scope of their employment. They are also give an ease of ownership and have limited liability and large financial capability however they are legal restrictions on their activites and lack of person interest. they are also taxed twice
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venture capitalist
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indivduals who loan money for business
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tangible assest
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the physical asset that possesses genuine value
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intangible asset
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a type of asset that is not able to be phsyically touched but is retained by a small business because of its value
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outside–in analysis
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consider both the general enviornment and the industriual environment within the area that someone is going to do business in. This type of analysis is most succesful
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Inside–out analysis
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focuses on what the entrepreneur is capable of doing good
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cost based strategy
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to be the lowest cost producer in the industry considered to be very difficult for small businesses
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Small business
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more then half of business are small business and it is the backbone of the economy, more effective by changing economy
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cash discount
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a reduction of the price given for payment of an account within the time limits established by the sales contract
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quantity discount
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reduction in the amount of bill when a minimum quantity of merchandise has been ordered
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rebate
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return portion of payment
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consignment
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the funeral director does not have to pay for the merchandise that will be displayed untill it is sold
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inventory
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goods or stock of goods which are held for resale
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advantages and disadvantages of corporations
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shareholders are not personally liable for the actions of the funeral home corp. the directors and officers of the cop are not personally liable for their actions if acting within the scope of their employment. They are also give an ease of ownership and have limited liability and large financial capability however they are legal restrictions on their activites and lack of person interest. they are also taxed twice
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Perpetual Inventory System
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Walmart technologically advanced provides an ongoing current record of inventory through computer software.
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Cycle Counting System
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scheduling different segments of the inventory for accounting at different times of the year
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Just-in time inventory
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a method of reducing inventory levels to an absolute minimum possibly due to a space and storage issue.
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ABC Inventory Analysis
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a system of classifying items in inventory by relative value
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Economic Order Quantity
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the quantity to be purchased which minimizes total costs |
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What are some advantages of a home based business
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convenience and Time with Family as well lower Overhead and lowerstartup cost
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what are some disadvantages of a home based business
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such as distractions and low amount of privacy and low business image and zoning ordinances
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what is E-commerce?
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the paperless exchange of business information via the internet
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what are the benefits of E-COMMERCE
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large broad market and low overhead and smaller companies can compete with larger companies
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three e commerce models
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business to business and business to consumer and auction site models
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Business to consumer
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finals customers are consumers such example such as amazon
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Auction site Models
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such as web based business offering participants to list products for bidding by potential buyers
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Inventory
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raw materials and products held by a firm for eventual sale
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four objectives of inventory management
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ensuring continuous operations and maximizing sales and protecting assets and optimizing inventory investments
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ensuring continuous operations
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making sure supply meets demand and product is available
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protecting assets
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anti theift and sprinklers and smoke detectors
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Optimizing inventory investments
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buying at the right price |
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some business need a good location such as
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restaurants, funeral homes and gas stations and banks
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some business do not need a good location to be successful such as
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call centers and E commerce and factories
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Customer accessibility
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customers must be able to get access to the bussiness which includes like handicap
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business environment conditions such as
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lack of competition and legal requirements and tax structure such as if their are corporate taxes or business taxes
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Site availability
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start business in a location for a reasonable price which allows for economic stability
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resources availability
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Resources must be readily available in the area such as labor and materials
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factors to consider when designing a funeral home are
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demographics and competition and parking and zoning and handicap accessibility as well as any of the local and state laws that might prohibit or impede work of business as well as fire and safety codes like OSHA and the availability of chapels |
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sources of financing
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70 percent of small business are funded by personal savings
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friends and family
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arms length loan
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bank loans
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have highest interest rate – red tape to deal
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government loans
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small business adminstration
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private equity investors
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people or firms who become involved in your business as a limited or active partner –may or may not experience in that field
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stock sales
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large business use equality financials
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total cost components
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selling cost- includes direct cost of a sales person and advertising and sales promotion
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overhead cost
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electric and insurance literally a cost that surrounds a product or service and as well as taxes
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elasticity of demand
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the degree in which a change of price effects quantity demanded
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elastic demand
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demand that changes significantly when prices decreased such as luxary items (think of sweet pants)
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inelastic demand
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Demand that does not change significantly when there change in price of product like milk (compared to jeans)
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Methods of pricing
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prestige pricing – a pricing tactic a cooperative advantage like gucci
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markup pricing
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a markup percentage to create a price and is easy to use and calculate and most popular pricing in retail stores (so if you buy jeans for
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0 then sell for 20)
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dynamic pricing
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when a seller charges more or less after gadgueing a costumer such as a contractor
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penetration pricing
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undercutting
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skimming pricing
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seting prices high initially for limited time wait to see if costumers will buy it prices get reduced depending on the rate of sales (trimming the fat off the land) example would be iphone
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follow the leader pricing
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uses a competitor to mimic the terms of pricing such as Wal-Mart price match guarantee
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variable pricing
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concession to certain costumers even though advertisement may have been at a certain price seen in many services business (negotiable pricing)
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price lining
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establishes distinct categorize similar of retail merchandise are offered for sale
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what the market will bear?
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Using a monopoly price because they are without competitors such as apple
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benefits of offering credit are
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people will use more money and more costumer information and ease of exchange with more people in more people out and credit can be used over phone and online
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with credit use of costumer information
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they get your personal email and can send you spam
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types of credit
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is consumer credit and credit cards and trade credit
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consumer credit
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are granted by retails to cosumer for personal or family use
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credit cards
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most common form of credit
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trade credit
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are offered by non financial firms such as manufactures and wholesalers and works on a business to business model –such as casket to funeral homes
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the five cs of credit
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is character and capital and condition and collateral
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character is
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honesty in business that underlies relationships
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capital
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cash and other liquid assets owned by costumer
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capacity
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refers to the costumers ability to conserve assets and faithful and efficiently follow a finical plan –save money
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condition
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outside factors that effect costumer ability to pay such as economy
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collateral
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designated security given as a pledge for fulfillment of obligation
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credit regulations by federal government
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fair credit billing act
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fair reporting act
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allowing for rights as applicants regarding credit reports compared by credit beruras |
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