Insufficient sale proceeds in a foreclosure may entitle the lender to seek a deficiency judgement, unless otherwise prohibited by law. Action to obtain the judgement must be commenced within two years of the foreclosure sale.

Saxon Corporation sells a product for $48 with costs of $33 per unit. Saxon uses a 9% rate of return for all its calculations. The CFO estimates that there is a 20% probability of a prospective new customers seeking credit will go bankrupt within the next 6 months. Customer wishes to place an order for 1,000 units of the product.

A) Extend credit; total benefit of $3,880 B) Extend credit; total benefit of $3,780 C) Extend credit; total benefit of $3,980 D) Extend credit; total benefit of $4,080

Adjustable rate loans

A) have less variability than flexible rate loans. B) are also called flexible rate loans. C) are tied to different indexes then those determining flexible rate loans. D) are for shorter periods than flexible rate loans.