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MTLE Business: Commercial Transactions Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is generally NOT contained in a promissory note?

Question 2 2. Kevin wants to file bankruptcy. He's the married father of three college-aged children. Kevin's family owns several assets including three cars and two houses. Between Kevin and his wife, the family makes an income of approximately $300,000. Their overall debt is over $1 million, with more than half of that in unsecured debt like credit cards and medical bills. Kevin will likely use _____ while filing for bankruptcy.

Question 3 3. When a debtor fails to fulfill the terms of the security agreement, it's known as a:

Question 4 4. Which of the following statements is the best explanation of how insurance allows a company to manage risk?

Question 5 5. What is the difference between general liability insurance and product liability insurance?

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Question 6 6. When the security agreement is complete and valid, the collateral becomes a part of the agreement. This is known as:

Question 7 7.

Suzie's Superstores, Inc. wants to file bankruptcy. They are insolvent and want to re-organize their debt, but stay in business.

Which type of Bankruptcy proceeding will Suzie's Superstores most likely to use?

Question 8 8. Maria wants to file bankruptcy for her business, Maria's Manicures. She's closing the business completely and wants to completely liquidate the assets. She doesn't plan to re-open. Maria will use _____ bankruptcy.

Question 9 9. Sometimes the creditor can legally take the collateral in an attempt to cover the debtor's loan. This is known as:

Question 10 10.

Regarding promissory notes, are these statements true or false?

1. Sandy learned that promissory notes typically contain repayment terms, whereas IOUs do not.

2. Sandy found out that promissory notes are typically less detailed than a loan contract.

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Question 11 11. During the student loan application process, Sandy signed a document that contained the name of the borrower, the name of the lender, the amount borrowed, the interest rate, the date the note was signed, and the first payment due date. This document is known as a:

Question 12 12. Which one of the following types of insurance is usually required by law?

Question 13 13.

True or false?

1. All IOUs contain repayment terms, just like a promissory note.

2. IOUs are synonymous to promissory notes and loan contracts.

Question 14 14. Greg wants to file bankruptcy. He wants to keep all of his assets, though his house is in foreclosure. He owes $200,000 on his house and $100,000 in unsecured debt, but has a regular salary of almost $30,000 a year. Which chapter of bankruptcy is Greg likely use?

Question 15 15. A promissory note is _____.

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Question 16 16. In a secured transaction, the creditor is also known as the:

Question 17 17. A tornado swept through a city making it difficult for a small business to earn money for some time. What kind of insurance would help to minimize the loss of income?

Question 18 18. What type of insurance provides protection against damage or loss to property or people due to accidents or natural disasters?

Question 19 19. In a secured transaction, the creditor's right to the collateral is also known as the:

Question 20 20. Jody decides to file bankruptcy. She's a single mother of two children and has very few assets. She makes a regular salary that's only slightly above the poverty level. Jody will likely use:

MTLE Business: Commercial Transactions Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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