Reference no: EM133149458

1. Why is credit important to businesses? Give an example to illustrate your point. How would a business that did not have access to credit be limited? Provide an example for this as well.

2. Describe a situation where using credit would be wise and one in which the use of credit would be unwise. Explain the difference.

3. Imagine you own a business and want to extend credit to customers. What kinds of resources are available to you to validate their credit history? What factors other than credit might you consider?

4. A car dealership will help customers finance cars. What is the dealership legally obligated to tell customers about these loans? Why is this important information for consumers?

5. If a business decides that it is going to extend credit to customers, what will the business need to do to minimize the risk for itself and the customers? What happens if the business fails to take these steps?

6. Find two examples of advertisements, each of which includes at least 2 of the 4Ps (of course, you may find more than 2 in the same advertisement). Briefly explain how each of the Ps is featured in the advertisements you chose and which dominates. Include a link to or copy of the advertisement with your answer.

7. Describe the last item that you or your family bought because of a sale or promotion. Say what it was and where you bought it. What kind of purchase was it (convenience, shopping, or specialty goods)? What kind of promotion did it feature and how? Why was it effective?