ABA CTFA Practice Test - Questions Answers, Page 23

Which of the following statements is correct regarding profit maximization as the primary goal?

In negotiating car prices, choosing among various makes, models, and options can make comparison difficult. You can check one of the popular price guides to research used car prices. What is that guide?

It is an agreement to purchase an automobile that states the offering price and all conditions of the offer; when signed by the buyer and seller, the contract legally binds them to its terms.

Once the dealer accepts your offer, you complete the purchase transaction and take the delivery of the car. If you are not paying cash for the car, you can arrange financing:

Lease is:

The most popular form of automobile lease is the one in which at the end of its term the lessee simply turns in the car (assuming the preset mileage limit has not been exceeded and the car hasn't abused)

Open-end lease is:

A commonly sited benefit of leasing is absence of down payment. However, today most leases require a ''capital cost reduction'' which is the down payment that lowers the potential depreciation and therefore your monthly lease payments. You may be able to negotiate a lower capital cost reduction or find a lease that doesn't require one. The lease payment calculation is based on four variables. Which one of the following:

A good lease contract should clearly define what is considered unreasonable. In addition, most leases requires the lessee to pay a disposition fee: